If the marginal propensity to consume is 0.9, what is the size of the multiplier?
A) 9
B) 0.1
C) 1
D) 10
Correct Answer:
Verified
Q83: Equilibrium in the Keynesian model requires that
Q97: If the marginal propensity to consume (MPC)
Q131: Suppose that Japan is a nation of
Q132: The multiplier effect shows that a change
Q134: At equilibrium, if spending increases by $300
Q135: Assume that the marginal propensity to consume
Q138: Suppose the government believes consumers should spend
Q139: In the simple Keynesian model with no
Q141: Suppose economists observe that an increase in
Q246: When the economy is in equilibrium in
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