If there are no income taxes or imports, the multiplier equals
A) 1/(1 - marginal propensity to consume) .
B) 1/(1 - marginal propensity to save) .
C) 1/(1 - marginal propensity to import) .
D) 1/(1 - marginal propensity to invest) .
Correct Answer:
Verified
Q248: The multiplier is larger if the
A) marginal
Q249: If the marginal propensity to consume is
Q250: An increase in the value of the
Q251: If there are no taxes or imports
Q252: The larger the slope of the AE
Q254: The relationship between the multiplier and the
Q255: If the slope of the AE curve
Q256: If a $75 billion increase in autonomous
Q257: If the MPC increases from 0.75 to
Q258: The expenditure multiplier equals
A) APC - APS
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