If the multiplier is 10, the marginal propensity to consume must be 0.1
Indicate whether the statement is true or false
FALSE
Economics
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If a component of aggregate demand increases,
A) GDP in the United States is likely to increase less than that component of spending increased. B) GDP in the United States is likely to increase more than that component of spending increased. C) GDP in the United States is likely to decrease. D) GDP in the United States will not change.
Economics
In the long run, total spending only influences:
A. potential output. B. actual output. C. productive capacity. D. inflation.
Economics