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The Multiplier in an Open Economy Will Decrease If

Question 2

Multiple Choice

The multiplier in an open economy will decrease if:


A) the marginal propensity to import increases.
B) the marginal propensity to consume increases.
C) either the marginal propensity to import or the marginal propensity to save decreases.
D) the marginal propensity to import decreases.

Correct Answer:

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