When comparing the autonomous expenditure multiplier in a closed-economy model to the autonomous expenditure multiplier in an open-economy model it can be concluded that
a. the multiplier in the open-economy model will be larger than in the closed-economy model.
b. the multiplier in the open-economy model will be smaller than in the closed-economy model.
c. both multipliers are the same.
d. None of the above.
ANSWER
B
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