Multiple Choice
If the marginal propensity to consume (MPC) is 0.9, the spending multiplier will be
A) 10.
B) 1.11.
C) 0.9.
D) 0.1.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q10: Saving is<br>A) the amount one does not
Q84: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q126: For an investment to be considered autonomous,
Q166: Of the relationships below, which is the
Q167: The equation is the <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5016/.jpg" alt="The
Q175: If the level of consumption is $100
Q226: The terms "saving" and "savings" differ in
Q239: According to Keynes, the most important determinant
Q394: The marginal propensity to consume explains how
Q400: Along the portion of the consumption function