Author Question: If the marginal propensity to consume is 0.75, then the value of the tax multiplier is A) -2.5. ... (Read 76 times)

rachel9 · **on:** Jun 30, 2018

If the marginal propensity to consume is 0.75, then the value of the tax multiplier is

A) -2.5. B) -3. C) 1.25. D) 1.4.

Question 2

According to the U.S. Secret Service, approximately 2.6 billion of U.S. paper currency in circulation is counterfeit. Undetected counterfeit U.S. currency being held by the public both at home and abroad will impact the level of

A) M1. B) the money multiplier.
C) the reserve ratio. D) commodity money.