Multiple Choice
Assume that the marginal propensity to consume equals 0.8,the income tax rate equals 0.3,and the marginal propensity to import equals 0.2.The marginal leakage rate is ________ and the size of the multiplier is ________.
A) 0.70;3.33
B) 0.60;2.5
C) 0.64;1.56
D) 0.50;2.0
Correct Answer:
Verified
Correct Answer:
Verified
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