The formula for the Keynesian multiplier without net exports is
A) .
B) .
C) .
D) .
E) .

Name: The formula for the Keynesian multiplier without net exports is A) . B) . C) . D) . E) .
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Question

The formula for the Keynesian multiplier without net exports is
A) . 
B) . 
C) . 
D) . 
E) .

Quizplus · Accepted Answer

The formula for the Keynesian multiplier without net exports is 1/(1-MPC) where MPC is the marginal propensity to consume. The correct value of the constant in front of the MPC is 1, not 11. Therefore, the formula is 1/(1-MPC), which corresponds to choice D.

The Formula for the Keynesian Multiplier Without Net Exports Is