In an Open Economy,if the Marginal Propensity to Save S

question 12

Multiple Choice

In an open economy,if the marginal propensity to save s = .20 and the marginal propensity to import m = .30,then what should be the foreign trade multiplier?

• A)2
• B)5
• C)3)33
• D)10

---

Definitions:

Clamping

The process of holding or securing objects tightly together using a device to prevent movement or separation.

Grasping

The action of seizing or holding firmly, often used to describe the development of motor skills in infants or for understanding concepts.

Scissors

Tools consisting of two blades joined together, used for cutting paper, cloth, or other materials.

Cutting

A form of self-injury where individuals intentionally cut their skin as a way of coping with emotional pain, stress, or distress.