The Larger the Marginal Propensity to Import, the __________ During

question 7

Multiple Choice

The larger the marginal propensity to import, the __________ during each round of spending and __________ the resulting spending multiplier.

• A)greater the leakage; the smaller
• B)smaller the leakage; the smaller
• C)smaller the leakage; the larger
• D)greater the leakage; the larger
• E)smaller the injection; the larger

---

Definitions:

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services by a firm.

Widgets

A generic term often used to describe an unspecified or hypothetical manufactured product.

Labor

The use of mental and physical capabilities in the creation of products and services.

Efficient

Describes a system or process that achieves maximum productivity with minimum wasted effort or expense.