Suppose an economy has no income taxes or imports. If the MPC is 0.75, what does the expenditure multiplier equal?
What will be an ideal response?
The expenditure multiplier equals , so in this case it equals = = 4.0.
Economics
You might also like to view...
Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain because of foreign
A) tariffs. B) subsidies. C) quotas. D) Local-Content legislation. E) comparative advantage.
Economics
When the U.S. banking system collapsed during 1929-1933, the money supply declined dramatically
a. True b. False Indicate whether the statement is true or false
Economics