Problem: In an open economy, MPC = 0.6, MPm = 0.2. This implies that:
A) MPS in the open economy is lower than in the closed economy.
B) MPS = 0.4 only if the economy were closed.
C) In the open economy, if GDP increases by 200 spending on consumption = 120.
D) In the open economy, if GDP increases by 200 spending on imports increases by 40.
E) B and D.