The figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the largest multiplier?
A) 1
B) 2
C) 3
D) 4
Correct Answer:
Verified
Q140: In annual percentage terms, investment spending in
Q141: Assume the MPC is 2/3. If investment
Q142: If the MPC is 0.70 and investment
Q143: The multiplier effect indicates that
A) a decline
Q144: Q146: The size of the multiplier is equal Q147: The multiplier applies to Q148: The numerical value of the multiplier will Q149: The multiplier can be calculated as Q150:
A) investment but not
A) 1/(MPS
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