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  3. Study Set
    Principles of Money Banking
  4. Exam
    Exam 23: The Keynesian Framework
  5. Question
    If the MPC Is B, Then the Multiplier Is
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If the MPC Is B, Then the Multiplier Is

Question 2

Question 2

Multiple Choice

If the MPC is b, then the multiplier is


A) 1/(1 - b) .
B) b/(1 - b) .
C) 1/(1 + b) .
D) b/(1 + b) .

Correct Answer:

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