An Increase in the Marginal Propensity to Import Will

question 55

Multiple Choice

An increase in the marginal propensity to import will

• A)raise imports and raise equilibrium income.
• B)lower imports and raise equilibrium income.
• C)lower the multiplier and reduce equilibrium income.
• D)raise the multiplier and reduce equilibrium income.

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Definitions:

Lawrence Kohlberg

A psychologist renowned for his theory of moral development, which proposes that human morality progresses through a series of stages.

Outgoing

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Describes a person or thing that is favorably regarded or enjoys popularity among a group or community.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings.