If the MPS is 0.1 and the income tax rate is 0.33,and the fraction of income spent on imports is 0.25,then the multiplier is
A) 2.5.
B) 1.47.
C) 1.51.
D) 1.55.
Correct Answer:
Verified
Q123: A rise in the income tax rate
Q124: Net exports _ the autonomous expenditure multiplier.
A)reduce
B)increase
C)A
Q125: If Y = income,G = government spending,T
Q126: The multiplier is defined as the ratio
Q127: Should autonomous consumption rise by one dollar,the
Q129: Economic model building begins with the construction
Q130: The portion of net exports determined by
Q131: If autonomous planned spending increases by $1
Q132: Higher real GDP growth usually causes
A)a drop
Q133: If s = MPS,and t = income
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