In a Simple Macro Model Where the Marginal Propensity to Consume

Multiple Choice

In a simple macro model where the marginal propensity to consume out of disposable income is 0.8,the net tax rate is 0.25,and the marginal propensity to import is 0.12,the simple multiplier will be

A) 0.480.
B) 1.471.
C) 1.923.
D) 2.083.
E) 2.110.