If the MPC = 0

question 17

Multiple Choice

If the MPC = 0.8, what is the government purchases multiplier?

• A) 0.20
• B) 0.50
• C) 2
• D) 5

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Definitions:

Cooperative Project

A collaborative effort where individuals work together towards a common goal, sharing resources and responsibilities.

Ethnic Background

The cultural heritage, nationality, race, religion, and language of an individual or their ancestors.

Cognitive Dissonance Theory

A psychological theory that suggests discomfort arises from holding two conflicting beliefs, leading individuals to change their attitudes or beliefs to reduce the dissonance.

Contemptuous

Showing a strong feeling of disdain or scorn for someone or something.