If the MPC = 0

question 116

Multiple Choice

If the MPC = 0.5 and the MPI = 0.3, what is the government purchases multiplier in an open economy?

• A) 1.25
• B) 2
• C) 4
• D) 5

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Definitions:

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Competitive Labor Market

A market where numerous buyers and sellers interact to determine the price and quantity of labor, ensuring no single entity can dictate the market terms.

Wage Discrimination

The practice of paying different wages to workers who perform similar tasks, based on non-performance-related factors such as race, gender, religion, or nationality.

Complaint

An expression of dissatisfaction or a formal accusation against a party, product, or service.