If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:

A. 1.
B. 9.
C. 10.
D. 90.

Answer: C

Economics

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If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to the right

Indicate whether the statement is true or false

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