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:

Formal Operational Period

In Piaget’s theory, the period from about age twelve on, in which a child can think abstractly and consider hypothetical possibilities.

Abstract Reasoning Skills

These skills involve the ability to analyze information, detect patterns and relationships, and solve problems on a complex, abstract level.

Formal Operational Period

A stage of cognitive development proposed by Piaget, where individuals (around 12 years and older) start to think abstractly, reason logically, and use deductive reasoning.

Sensorimotor

Relating to or involving both sensory and motor functions or pathways.