Consider a Simple Macro Model with Government and Foreign Trade

question 41

Multiple Choice

Consider a simple macro model with government and foreign trade and where the price level is taken as given.The simple multiplier is equal to

• A)1/(1 - MPC).
• B)1/MPC.
• C)1/(1- MPS - t).
• D)1/(1 - (MPC(1 - t)- m )).
• E)1/(1- (MPS(1 - t)- m )).