Multiple Choice
An estimate of the MPC in the U.S. is 0.90. Paul Krugman, the 2008 Nobel Prize winner in economics, stated, "... you'd be hard pressed to argue for an overall multiplier as high as 2."
Www) nytimes.com, 11/10/2008
What factors could explain the difference between the MPC and Krugman's estimate of the multiplier?
A) exports and investment
B) investment and imports
C) imports and taxes
D) taxes and investment
Correct Answer:

Verified
Correct Answer:
Verified
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Q93: After an increase in autonomous spending, in
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Q96: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure shows
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Q100: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above