A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are
A)smaller in closed economies than in open economies.
B)larger in closed economies than in open economies.
C)smaller in capitalist economies than in socialist economies.
D)larger in capitalist economies than in socialist economies.

Question

Quizplus · Accepted Answer

Multipliers tend to be larger in closed economies because there are fewer leakages from the spending cycle, such as imports, which are more prevalent in open economies.

A 2009 Article in the Economist Noted That Some Studies