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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
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    In an Economy with No Income Taxes or Imports, If
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In an Economy with No Income Taxes or Imports, If

Question 299

Question 299

Multiple Choice

In an economy with no income taxes or imports, if the MPC is .75, the expenditure multiplier is


A) 0.25.
B) 0.33.
C) 0.50.
D) 4.00.
E) 3.00.

Correct Answer:

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