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

Multiple Choice

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

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