Multiple Choice
If the MPC = 4/5, then the government purchases multiplier is
A) 5/4.
B) 4/5.
C) 5.
D) 20.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q113: Last year, total income increased $1,000 and
Q114: _ are changes in fiscal policy that
Q115: For the most part, fiscal policy affects
Q116: If the MPC is 0.50 and there
Q117: The automatic stabilizers in the U.S. economy
Q119: Scenario 34-1. Take the following information as
Q120: According to the IGM poll, most economists
Q121: Figure 34-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-8
Q122: Assume there is a multiplier effect, some
Q123: Figure 34-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-6