Which of the following statements is true?
A) The larger a nation's marginal propensity to consume, the smaller the open-economy multiplier.
B) The smaller a nation's marginal propensity to import, the smaller the open-economy multiplier.
C) The larger a nation's marginal propensity to export, the smaller the open-economy multiplier.
D) The larger a nation's marginal propensity to import, the smaller the open-economy multiplier.
Correct Answer:
Verified
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