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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    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 42

Question 42

Multiple Choice

In an economy with no income taxes or imports, if the expenditure multiplier is 5, what does the MPC equal?


A) 0.5
B) 0.4
C) 0.8
D) 0.2
E) 0.9

Correct Answer:

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