The Open Economy Multiplier Is

question 47

Multiple Choice

The open economy multiplier is:

• A)larger than the simple multiplier because the latter embodies fewer leakages.
• B)larger than the simple multiplier because the latter embodies more leakages.
• C)smaller than the simple multiplier because the latter embodies fewer leakages.
• D)smaller than the simple multiplier because the latter embodies more leakages.