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.

---

Definitions:

Dispositional Influences

Characteristics or traits of individuals that influence their behaviors and attitudes.

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situations when explaining other peoples' behaviors.

Internal Qualities

Characteristics or traits that are inherent to an individual, often related to personality, values, or motivation.

Situational Factors

External influences that can affect the behavior and outcomes of individuals in any given context.