Multiple Choice
If the MPS = .2, what is the full potential expenditure multiplier?
A) .8
B) 8
C) 1
D) 5
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q83: The classical view assumes that an increase
Q84: When the aggregate expenditures model shows an
Q85: How does the broken window fallacy illustrate
Q86: Why do classical economists believe that expansionary
Q87: Macroland has real a GDP of $650
Q89: What is the difference between aggregate demand
Q90: In the aggregate expenditures model, which of
Q91: If the consumption function is C =
Q92: Keynes's theory is consistent with the idea
Q93: In the aggregate expenditures model, a change