Jun
5
Why is the multiplier effect smaller in an open economy and larger in a closed economy?
Filed Under Economics
Vikram S asked:
Hey I was trying to figure this out. Why is the effect larger in the closed economy and small in the open economy where international trade is allowed. Can anyone help?
Addison
Hey I was trying to figure this out. Why is the effect larger in the closed economy and small in the open economy where international trade is allowed. Can anyone help?
Addison