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In an Economy with No Income Taxes or Imports,the Expenditure

Question 136

Multiple Choice

In an economy with no income taxes or imports,the expenditure multiplier is


A) greater than 1 if the MPC is less than 1.
B) equal to 1 if the MPC is greater than 1.
C) greater than 1 only if the MPC is greater than 1.
D) always less than 1 no matter what the size of the MPC.
E) less than 1 only if the MPC is less than 1.

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