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An increase in the marginal propensity to import will cause

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7 years ago

An increase in the marginal propensity to import will cause

An increase in the marginal propensity to import will cause
A) the multiplier to increase and a given change in government spending (G) to have a larger effect on domestic output.
B) the multiplier to increase and a given change in government spending (G) to have a smaller effect on domestic output.
C) the multiplier to decrease and a given change in government spending (G) to have a larger effect on domestic output.
D) the multiplier to decrease and a given change in government spending (G) to have a smaller effect on domestic output.

Textbook

Macroeconomics

Edition: 6^th

Authors: Blanchard, Johnson

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Roar Author

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6 years ago

Great answer, ty

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