Midwest State University in Nebraska is trying to convince Nebraska taxpayers that the tax dollars spent at Midwest State University are well spent. One of the university's arguments is that for every $1 spent by Midwest State University, an additional $5 of expenditures are generated within Nebraska. Midwest State University is arguing that the mpc in this economy is:
A) 0.2.
B) 0.8.
C) 0.75.
D) 5.
Correct Answer:
Verified
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