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:

Number of Commercial Bakers

The number of commercial bakers refers to the total count of businesses or individuals that produce and sell baked goods on a large scale.

Income

The money received by a person or entity, typically in exchange for providing labor, goods, or services, or through investing.

Output Standards

Specific, measurable performance targets that outline the expected results of an employee's output, ensuring productivity and quality.

Input Standards

Benchmarks or criteria set for the quality or quantity of inputs (material, information, etc.) required in a process.