Multiple Choice
In a simple macro model with demand- determined output, the simple multiplier is equal to 1/(1- z) , where z equals the
A) average propensity not to spend.
B) level of autonomous expenditure.
C) marginal propensity not to spend.
D) average propensity to spend.
E) marginal propensity to spend.
Correct Answer:
Verified
Correct Answer:
Verified
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