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    Principles of Economics Study Set 7
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    ​If the MPC Changed from 0
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​If the MPC Changed from 0

Question 263

Question 263

Multiple Choice

​If the MPC changed from 0.8 to 0.6, then the spending multiplier would change from


A) ​5 to 2.5.
B) ​2.5 to 5.
C) ​0.8 to 0.6.
D) ​8 to 6.

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