Solved

If for Every One Dollar Increase in Income,savings Increases by 25

Question 8

Multiple Choice

If for every one dollar increase in income,savings increases by 25 cents,the marginal propensity to consume is _________ and the closed economy multiplier is ______.


A) .25,4
B) .75,4
C) .25,.04
D) .75,1.333

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: The ratio of the change in income

Q4: When US demand for imports is price

Q5: When demand is unitary elastic,a change in

Q6: If the US currency pass-through is 60

Q7: When a(n)_condition is present,a disturbance from the

Q9: The equilibrium level of national income in

Q10: The _ operated from about 1880 until

Q11: What is the Marshall-Lerner Condition and how

Q12: In an open economy,if the marginal propensity

Q13: For the US,the currency pass-through is about