Suppose a country has no income taxes or imports. If the MPC is 0.75, what does the multiplier equal?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q443: The positive relationship between consumption expenditure and
Q444: As disposable income increases, saving increases.
Q445: A change in the real interest rate
Q446: The slope of the AE curve is
Q447: Suppose the economy has no income taxes
Q449: The autonomous components of aggregate expenditures are
Q450: The marginal propensity to consume must increase
Q451: Suppose the economy has no income taxes
Q452: A movement along the consumption function is
Q453: If wealth increases, the consumption function shifts
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents