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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    If the Marginal Propensity to Consume Is 0
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If the Marginal Propensity to Consume Is 0

Question 125

Question 125

Multiple Choice

If the marginal propensity to consume is 0.75, the multiplier for taxes and transfer payments is:


A) less than 4.
B) equal to 4.
C) greater than 4.
D) equal to 0.75.

Correct Answer:

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