If the multiplier is 4 and there are no imports or income taxes, the marginal propensity to consume is
A) 1.00.
B) 0.75.
C) 0.50.
D) 0.25.
Correct Answer:
Verified
Q108: Q109: Suppose disposable income increases from $5 billion Q110: Actual aggregate expenditure is Q111: Suppose that, in 2012, firms discover that Q112: Because the short-run aggregate expenditure model assumes Q115: At equilibrium expenditure, Q116: If the MPC increases from 0.75 to Q117: A movement along the consumption function is Q118: After an increase in autonomous spending, in Q304: 
A)always equal to real
A)aggregate planned expenditure equals real
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