Multiple Choice
Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is between zero and one,the simple multiplier is
A) zero.
B) a positive number between zero and one.
C) one.
D) a positive number greater than one but less than infinity.
E) infinitely large.
Correct Answer:
Verified
Correct Answer:
Verified
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