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When the MPC Is 0

question 47

True/False

When the MPC is 0.8 and t is 0.4, then the government spending multiplier is about -1.54.


Definitions:

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator.

Numerator

The top number in a fraction that indicates the number of parts considered, relative to the denominator.

Denominator

The bottom number in a fraction, which represents the total number of equal parts the whole is divided into.

Metric Units

A system of measurement based on powers of ten, including units such as meters, liters, and grams.

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