Which of the Following Statements Is True

question 283

Multiple Choice

Which of the following statements is true?

• A) The larger a nation's marginal propensity to consume, the larger the open-economy multiplier.
• B) The larger a nation's marginal propensity to import, the larger the open-economy multiplier.
• C) The smaller a nation's marginal propensity to export, the larger the open-economy multiplier.
• D) The smaller a nation's marginal propensity to save, the smaller the open-economy multiplier.

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties regarding their rights and obligations.

Writing

The act or skill of composing text for various purposes, such as communication, documentation, and expression of ideas.

Enforceable

describes a contract or covenant that can be legally imposed or carried out through legal action.

Incapacitated

A state where an individual is unable to take care of themselves or manage their affairs due to physical or mental limitations.