If the marginal propensity to consume is equal to 0.75,the spending multiplier is equal to
A) 4.0.
B) 1.75.
C) 0.25.
D) 0.57.
E) 1.33.
Correct Answer:
Verified
Q48: If the spending multiplier is 5,what is
Q49: An example of the multiplier effect is
Q50: Refer to the following figure to answer
Q51: The portion of additional income that is
Q52: The three time lags that accompany policy
Q54: Recognition lag,implementation lag,and impact lag are all
Q55: Time lags,crowding-out,and savings shifts are all
A) examples
Q56: The spending multiplier is
A) a formula to
Q57: To determine the total impact on spending
Q58: Countercyclical fiscal policy attempts to
A) smooth out
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