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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    As the MPC Gets Close to 1,the Value of the Multiplier
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As the MPC Gets Close to 1,the Value of the Multiplier

Question 57

Question 57

Multiple Choice

As the MPC gets close to 1,the value of the multiplier approaches


A) 0.
B) 1.
C) infinity.
D) None of the above is correct.

Correct Answer:

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