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Author Question: If the MPCis 0.4, the government spending multiplier is (Read 63 times)

vinney12

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Question 1

The ratio of the change in the equilibrium level of output to a change in government purchases is the


◦ government purchases multiplier.
◦ government deficit ratio.
◦ government surplus-to-deficit ratio.
◦ output expenditure equilibrium.

Question 2

If the 
MPC is 0.4, the government spending multiplier is


◦ 25.
◦ 2.5.
◦ 1.67.
◦ 0.6.


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Marked as best answer by vinney12 on Apr 19, 2019

Sophiapenny

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vinney12

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Sophiapenny

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