If the marginal propensity to consume is 0.60,then the multiplier equals
A) 2.50.
B) 0.60.
C) 1.67.
D) 0.40.
Correct Answer:
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Q31: When unwanted business inventories pile up,which of
Q32: If consumers spend 80 cents out of
Q33: Desired investment equals
A)Desired changes in business inventories.
B)Purchases
Q34: Which of the following is an example
Q35: Assume there is no foreign trade,the government
Q37: Actual investment equals
A)Desired investment plus planned investment.
B)Planned
Q38: Assuming an upward-sloping AS curve,if an economy
Q39: If the multiplier is greater than 1
Q40: The multiplier process can occur when a
Q41: An economy with no government and no
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