Solved

If 100 Percent of Any Change in Income Is Spent

Question 189

Multiple Choice

If 100 percent of any change in income is spent, the multiplier will be

A) equal to the MPC.
B) 1.
C) zero.
D) infinitely large.

Related Questions

Q59: The multiplier shows the relationship between changes

Q63: The multiplier is<br>A) 1/MPC.<br>B) 1/(1 + MPC).<br>C)

Q82: If for some reason households become increasingly

Q178: Assume that an increase in a household's

Q182: Personal saving is equal to<br>A) disposable income

Q184: The multiplier effect magnifies the effect of

Q186: If disposable income is $350 billion and

Q191: If, in an economy, a $200 billion

Q193: Suppose that new computer software for accounting

Q224: When we draw an investment demand curve,