Multiple Choice
If the MPC = 0.6 and the MPI = 0.25, what is the government purchases multiplier in an open economy?
A) 1.8
B) 2.5
C) 4
D) 6.7
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q114: If households view a tax cut as
Q115: Assume that the MPC is 0.75. Assuming
Q116: If the MPC = 0.5 and the
Q117: Suppose that there are no crowding-out effects
Q118: Which of the following best defines the
Q120: During expansions, what do automatic stabilizers make
Q121: Which statement is consistent with the supply-side
Q122: Suppose the closed economy is in long-run
Q123: How do the multiplier effect and the
Q124: If there is crowding out, which of