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Author Question: If the MPC = 0.75, the government spending multiplier would be A) 0.25. B) -7.5. C) 4. D) ... (Read 67 times)

mspears3

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on: Jun 30, 2018
If the MPC = 0.75, the government spending multiplier would be
 
  A) 0.25. B) -7.5. C) 4. D) 25.

Question 2

If the marginal propensity to save (MPS) increases, the multiplier
 
  A) decreases.
  B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
  C) increases.
  D) stays the same.


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enass

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


mspears3

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

shailee

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Reply 3 on: Yesterday
Excellent

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