Answer to Question #332361 in Macroeconomics for Yaya

Question

Suppose the sanctions are imposed on South African economy decreased the marginal propensity to import, how will the size of the multiplier be affected?

a. 

It will stay the same.

a. It will stay the same.

b. 

It will increase.

b. It will increase.

c. 

It will decrease.

Answer 1

b. It will increase.