[Answered] If the MPC = 0.75, the government spending multiplier would be A) 0.25. B) -7.5. C) 4. D) ...

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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 30 times)

mspears3

Hero Member
Posts: 586

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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Marked as best answer by a Subject Expert

enass

Sr. Member
Posts: 380

Reply #1 on: Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

A

mspears3

Member
Posts: 586

Reply 2 on: Jun 30, 2018

YES! Correct, THANKS for helping me on my review

xiaomengxian

Member
Posts: 311

Reply 3 on: Yesterday

Great answer, keep it coming

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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 30 times)

mspears3

If the MPC = 0.75, the government spending multiplier would be A) 0.25. B) -7.5. C) 4. D) ...

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enass

If the MPC = 0.75, the government spending multiplier would be A) 0.25. B) -7.5. C) 4. D) ...

mspears3

xiaomengxian