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Question Practice

If the economy has a marginal propensity to import (m) greater than zero, how does that affect the multiplier?

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MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Open Economy Macroeconomics
Question Bank

If the economy has a marginal ...

Single Answer MCQ
Q-00089223

If the economy has a marginal propensity to import (m) greater than zero, how does that affect the multiplier?

1

Increases the multiplier

2

Reduces the multiplier

3

Has no impact on the multiplier

4

Makes it unstable

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