When calculating the multiplier for government purchases (G) , we
A) must know the marginal propensity to save (mps)
B) must know the income tax rate (t)
C) must know the average propensity to consume (apc)
D) can ignore the size of the marginal propensity to consume (mpc)
E) both A) and B)
Correct Answer:
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Q2: The size of the expenditure multiplier depends
Q3: In a simple model with no government
Q4: The size of the expenditure multiplier
A)changes with
Q5: The expenditure multiplier measures
A)the number of steps
Q6: If there is no government or foreign
Q7: The marginal propensity to consume (mpc)
A)shows the
Q8: In a model with no government or
Q9: The expenditure multiplier is used to calculate
Q10: Assume a model with no government, where
Q11: Assume a simple model without any government.If
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