If the MPC Equals 0

Question 22

Multiple Choice

If the MPC equals 0.75 and the proportional income tax rate is 0.2, the spending multiplier equals

A) 3
B) 2.5
C) 16/13
D) 1
E) 4

Related Questions

Q12: When we relax the assumption that net

Q13: If the government wants to increase equilibrium

Q14: If the MPC = 0.8 and both

Q15: If the government raised transfer payments by

Q16: If the MPC is equal to .75

Q17: The _ the proportional tax rate, t,

Q18: An increase in autonomous government purchases will

Q19: The balanced budget multiplier is always negative.

Q20: The effect of a new proportional income

Q21: In which of the following situations will