Where MPC is the marginal propensity to consume, the formula for the spending multiplier is:
A) . 
B) . 
C) . 
D) . 
E) . 
Correct Answer:
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Q43: Marginal propensity to consume is:
A) the portion
Q49: An example of the multiplier effect is
Q52: The portion of additional income that is
Q52: The three time lags that accompany policy
Q54: Recognition lag,implementation lag,and impact lag are all
Q55: An initial increase in government spending of
Q55: Time lags,crowding-out,and savings shifts are all
A) examples
Q57: To determine the total impact on spending
Q59: Countercyclical fiscal policy consists of:
A) using expansionary
Q60: If your income increases by $1,500 and
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