If the marginal propensity to consume is 0.85, the value of the spending multiplier will be
A) 0.15.
B) 1.17.
C) 5.1.
D) 6.67.
Correct Answer:
Verified
Q2: Which expenditure component decreased the most between
Q3: Which statement is correct?
A) Keynesian economics is
Q4: The balanced budget multiplier does not depend
Q5: At equilibrium, when a tax is put
Q6: If John's Clean Clones builds a factory
Q8: The expenditures approach to calculating GDP includes
Q9: In the Keynesian framework, increments of spending,
Q10: In Keynesian macroeconomic equilibrium, there are pressures
Q11: Negative saving, by definition, is impossible.
Q12: Assume that the MPC is 0.75, full
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