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A Decrease in the Marginal Propensity to Import ________, Everything

Question 4

Multiple Choice

A decrease in the marginal propensity to import ________, everything else remaining the same.


A) makes the multiplier larger
B) makes the multiplier smaller
C) has no effect on the multiplier
D) sometimes increases the multiplier and sometimes decreases the multiplier
E) increases the marginal propensity to consume

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