Multiple Choice
The expenditure multiplier equals
A) MPC - MPS where MPC is the marginal propensity to consume and MPS is the marginal propensity to consume.
B) APC - APS where APC is the average propensity to consume and APS is the average propensity to save.
C) 1/(slope of AE curve) .
D) 1/(1 - slope of AE curve) .
Correct Answer:
Verified
Correct Answer:
Verified
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