An Increase in Government Spending Will Have a Greater Impact

question 64

Multiple Choice

An increase in government spending will have a greater impact on net exports when

• A)the marginal propensity to save is smaller.
• B)the economy is closed.
• C)the sensitivity of investment to income is smaller.
• D)all of the above
• E) none of the above

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Definitions:

Review Skills

The abilities or techniques used to effectively go over material previously learned, often to prepare for exams or maintain understanding.

Leadership Role

A position that involves guiding, influencing, or directing others towards achieving a common goal or completing a task.

Attentive

Paying close attention to something; noticing or carefully observing.

Left-Brain Dominant

A characteristic where a person is more analytical, logical, and detail-oriented, often associated with the left hemisphere of the brain.