Economics · Macroeconomics

Which of the following represents the foreign trade multiplier, where b = marginal propensity to consume and m = marginal propensity to import?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

111 - b + m✓
211 - m + b
311 - (b + m)
4m1 - b

Correct answer

11 - b + m

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Which of the following represents the foreign trade multiplier, where b = marginal propensity to consume and m = marginal propensity to import?

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Which of the following represents the foreign trade multiplier, where b = marginal propensity to consume and m = marginal propensity to import?

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