Consider a no government open economy. If the marginal propensity to consume is 0.9 and the marginal propensity to import is 0.15, then:
A) the multiplier is 1/0.9
B) the multiplier is 1/.75.
C) the multiplier is 1/0.25.
D) the multiplier is 1/0.1.
Correct Answer:
Verified
Q73: Q74: If income is at a level at Q75: Suppose that national income is initially at Q76: In a 45-degree line diagram a fall Q77: The investment multiplier is: Q79: The principle of the multiplier states that: Q80: Multiplier in an open economy with no Q81: The multiplier effect suggests that: Q82: Consider a no government open economy with Q83: Consider a no government open economy. If
A) negatively related to
A)
A) given a
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