Multiple Choice
Consider a no government open economy. If the marginal propensity to consume is 0.9 and the marginal propensity to import is 0.15, then:
A) the multiplier is 1/0.9
B) the multiplier is 1/.75.
C) the multiplier is 1/0.25.
D) the multiplier is 1/0.1.
Correct Answer:
Verified
Correct Answer:
Verified
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