The Multiplier Effect of a Change in Foreign Autonomous Expenditures

The multiplier effect of a change in foreign autonomous expenditures in the U.S.:

A) is zero because the U.S.is a closed economy.
B) is large because the United States imports a significant amount of foreign goods and services.
C) is large because the United States exports domestic products to every part of the world.
D) is small because the U.S.economy is too large to be significantly affected by foreign aggregate expenditures.
E) is small because U.S.foreign trade is not large enough to be counted as part of domestic GDP.

Correct Answer:

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