Assume there is no government or foreign sector. If the marginal propensity to save is 0.25, the multiplier is:
A) 1.11.
B) 9.
C) 1.33.
D) 4.
Correct Answer:
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Q187: Q188: Q189: Disposable income: Q190: If the consumption function is C = Q191: If the economy finds itself at a Q193: The existence of automatic stabilizers causes: Q194: If the marginal propensity to consume is Q195: If the marginal propensity to save is Q196: If you save $20 when you experience Q197: If the economy finds itself at a
A) increases when income increases.
B) decreases
A) the
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