In a simple model of the economy, if the MPC is 0.8, the multiplier will equal

A) 0.2
B) 0.8
C) 1.25
D) 5

D

Economics

You might also like to view...

Government institutions that protect the rights of individuals are ______

a. the executive, legislative, and judicial branches of government b. federal, state, and local governments c. federal agencies such as OSHA, FEC, and the FCC d. police, military branches, and the court system

Economics

The natural rate of unemployment

a. is always constant. b. is always equal to 5%. c. can vary over time and from country to country. d. has been rising in recent years in the U.S. e. is very similar across countries

Economics