In an open economy, multiplier effects are higher, when MPZ is positive, in comparison to where MPZ is zero.

Name: In an open economy, multiplier effects are higher, when MPZ is positive, in comparison to where MPZ is zero.
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In an open economy, the multiplier effect is lower when the marginal propensity to import (MPZ) is positive because some of the increased income is spent on imports, reducing the impact on domestic output.

In an Open Economy, Multiplier Effects Are Higher, When MPZ