An increase in the marginal propensity to import will
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2 marks, −1MacroeconomicsKeynesian cross and the multiplierThe open-economy multiplierEasyabout 1 min
JNU SIS 2018 Question 10: Keynesian cross and the multiplier
Answer and worked solution
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Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on The open-economy multiplier, part of Keynesian cross and the multiplier in Macroeconomics.
How imports leak spending abroad and shrink the multiplier.
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