Solved

If the MPC Is 0

Question 76

Multiple Choice

If the MPC is 0.75 and the tax rate is 10%,the expenditure multiplier will equal

A) 0.48.
B) 1.48.
C) 3.08.
D) 3.6.

Related Questions

Q67: There is no guarantee that after a

Q68: Changes in taxes,transfer payments,or government expenditures that

Q69: Holding all else constant,an increase in consumption

Q70: If the economy is in a recession,the

Q71: For each of the following situations,choose a

Q72: Briefly explain the effects on potential GDP

Q73: The cyclically adjusted budget deficit or surplus

Q74: If income taxes are incorporated into the

Q75: Historically,the largest Canadian federal budget deficits as

Q77: Expenditure and tax multipliers are likely to