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    Business
  3. Study Set
    Macroeconomics Study Set 9
  4. Exam
    Exam 13: Fiscal Policy in the Short Run
  5. Question
    If the MPC Is 0
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If the MPC Is 0

Question 2

Question 2

Multiple Choice

If the MPC is 0.8 and the tax rate is 20%,the expenditure multiplier will equal


A) 1.19.
B) 2.78
C) 4.0.
D) 6.0.

Correct Answer:

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