If the value of the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is:
A) 10.
B) 1.1.
C) 90.
D) 100.
Correct Answer:
Verified
Q41: If the economy spends 80 percent of
Q46: If the marginal propensity to consume (MPC)
Q51: A $2,000 decrease in investment will shift
Q78: The spending multiplier is:
A) 1 / (1
Q81: Suppose that John Maestro, the owner of
Q82: In the aggregate expenditures model, assume that
Q84: If $30 billion in new investment was
Q85: The effect of an increase in investment
Q88: If the marginal propensity to consume (MPC)is
Q89: Suppose equilibrium real GDP is currently at
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