If the marginal propensity to consume is very close to zero, then the multiplier

A) cannot be calculated.
B) is very close to one.
C) is very large.
D) is very close to zero.
E) might be negative if the marginal tax rate is large enough.

B

Economics

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Which of the following is a flow variable?

A) consumption B) savings C) wealth D) population

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If George's MPS is 0.75 and he earns an additional $1,000, how much would he spend?

a. $250 b. $750 c. $1,333 d. $4,000

Economics