If the MPC is 0.9, then the government spending multiplier is:
a) 0.1
b) 1.11
c) 9
d) 10
Ans: d) 10
Economics
You might also like to view...
Why does the profit-maximizing level of production occur at the point where marginal revenue equals marginal cost?
What will be an ideal response?
Economics
The DD schedule shows
A) interest rate and output pairs for which aggregate demand equals aggregate output. B) exchange rate and output pairs for which aggregate demand equals aggregate output. C) exchange rate and output pairs for which aggregate supply equals aggregate output. D) interest rate and output pairs for which aggregate supply equals aggregate output. E) exchange rate and output pairs for which aggregate demand is greater than aggregate output.
Economics