If the multiplier is 2, the MPC is
A. .1.
B. .2.
C. .5.
D. .8.
E. 1.0.
C. .5.
Economics
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The production possibilities frontier itself illustrates
A) all goods that can be produced by an economy. B) the combination of goods and services that can be produced efficiently. C) all goods and services that are desired but cannot be produced due to scarce resources. D) all possible production of capital goods.
Economics
If the marginal propensity to save (MPS) is 0.1, the spending multiplier will be
A. 1.1. B. 10. C. 0.9. D. 0.1.
Economics