Solved

If the Marginal Propensity to Consume Is 0

Question 112

Multiple Choice

If the marginal propensity to consume is 0.85,how much is the spending multiplier?

A) 0.15
B) 1.17
C) 5.1
D) 6.67

Related Questions

Q4: The balanced- budget multiplier equals 1.

Q48: Tax changes generally have less of an

Q74: The 45-degree line in the Keynesian model

Q115: Spending by federal,state,and local government has grown

Q116: Firms decide how much to invest by

Q117: Suppose the economy has more saving than

Q134: Suppose full employment real GDP is $13

Q190: John Maynard Keynes advised U.S. President Franklin

Q207: If consumption decreases from $600 billion to

Q257: At equilibrium, if spending increases by $300