How the multiplier in an open economy has changed compared to the multiplier in a closed economy

Compared with the multiplier under the closed economy, the biggest change is that the open economy will bring more opportunities and vitality to the economy, and it will be more susceptible to the influence of the international market and bring more challenges than the closed economy, but it will also bring more opportunities and development.

Economic development is inseparable from continuous exploration, and innovative technology is the absolute mainstream of the future.

1.The number of sails in an open economy refers to the fact that in an open economy, the leaked income flows to both savings and imports, which can then be used to seek investment or spending.

2.Therefore, the open economy multiplier for investment or expenditure can be found by the following formula: MPS - marginal propensity to save and MPM - marginal propensity to import. Open Economy Multiplier = 1 (mps+mpm).

3.In open economics, the "multiplier" is the amount that accounts for a large change in income due to a slight change in investment.

4.The multiplier in an open economy is smaller than the multiplier in a closed sutra ascension. Under the conditions of an open economy, part of the transfer payment will be used for foreign investment or foreign consumption, which increases foreign GDP, but cannot increase domestic GDP.

In a closed economy, all this money is used for domestic investment or consumption or other purposes, which can increase domestic GDP. As a result, the increase in GDP in an open economy is less than in a closed economy.

Answer]: Friendship A

The multiplier of the open economy is 1 (1-c+m) and the multiplier of the closed economy is 1 (1-c). Among them, the value of marginal inlet tilting fiber m is 0

1.The investment multiplier in a closed economy refers to the investment multiplier of the three-sector economy y=c+i+g=a+b(y-t)+i+g to get y=a+i+g-bt (1-b).

Then we derive the investment multiplier k=1 (1-b)2Investment multiplier in the open economy: refers to the investment multiplier of the four-sector economy y=c+i+g+nx (nx =x-m, m=mo+ry) so sort out y=(a+i+g-bt+btr+x-mo) (1-b+r) so the investment multiplier k=1 (1-b+r) is derived for i

With external **, the national income multiplier k=1 (1-b) has now become 1 (1-b+r) and the multiplier has become smaller.

This is because part of the increase in national income from investment is used in imported goods, that is, part of the income increased by investment is given to foreigners. Hope it works for you.

False] In an open economy, the multiplier of spontaneous expenditure change is 1 (1-b+y), while in a closed economy, the multiplier of spontaneous expenditure change is 1 (1-b), and the multiplier effect of spontaneous expenditure change in an open economy is smaller than that of a closed economy. Therefore, the question is wrong.