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Mathematically, the Value of the Spending Multiplier in Terms of the Marginal

Question 140

Multiple Choice

Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:

A) MPC − 1.
B) (MPC − 1) /MPC.
C) 1/MPC.
D) 1/(1 − MPC) .

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