Consider the Simple Macro with Demand-Determined Output

Multiple Choice

Consider the simple macro with demand-determined output.If the marginal propensity to consume out of disposable income (MPC) is equal to the marginal propensity to spend out of national income (z) ,then

A) the marginal propensity to import (m) is larger than the tax rate (t) .
B) the marginal propensity to import (m) is smaller than the tax rate (t) .
C) the simple multiplier is smaller in a closed economy with no government.
D) the simple multiplier is larger in a closed economy with no government.
E) there is no effect on the simple multiplier from imports or tax rates.