Which of the following economies has the largest multiplier?
A) Economy A with an MPS of 0.5
B) Economy B with an MPS of 0.1
C) Economy C with an MPC of 0.8
D) Economy D with an MPC of 0.6.
Correct Answer:
Verified
Q75: If consumers save 15 cents out of
Q76: Assume an MPC of 0.6.The change in
Q77: If the current level of spending falls
Q78: The marginal propensity to save is:
A) Equal
Q79: If consumers spend 80 cents out of
Q81: Disposable income is:
A) The after-tax income of
Q82: The aggregate demand curve shifts to the
Q83: With respect to the aggregate demand curve,a
Q84: A budget deficit is incurred whenever:
A) Tax
Q85: If the multiplier is 2.5 and defense
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents