menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Macroeconomics Australia
  4. Exam
    Exam 12: Aggregate Expenditure Multiplier
  5. Question
    If the Marginal Propensity to Consume Is Very Close to Zero,then
Solved

If the Marginal Propensity to Consume Is Very Close to Zero,then

Question 73

Question 73

Multiple Choice

If the marginal propensity to consume is very close to zero,then the multiplier


A) is very close to zero.
B) is very close to one.
C) is very large.
D) might be negative if the marginal tax rate is large enough.
E) cannot be calculated.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q14: What is the value of the MPC

Q19: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -In the figure

Q48: If disposable income decreases during a recession,

Q68: The smaller the amount saved out of

Q69: An increase in expected future disposable income

Q70: To find aggregate planned expenditures,which of the

Q71: An economy has no imports or income

Q74: When the price level falls,the aggregate planned

Q78: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1012/.jpg" alt=" -The above table

Q92: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The above table

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines