The government spending multiplier in a closed economy is the same as the government spending multiplier in an open economy.

Name: The government spending multiplier in a closed economy is the same as the government spending multiplier in an open economy.
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In an open economy, there are leakages in the form of imports and injections in the form of exports that affect the value of the multiplier. Therefore, the government spending multiplier in an open economy is lower than in a closed economy.

The Government Spending Multiplier in a Closed Economy Is the Same