The Expenditure Multiplier Equals

question 390

Multiple Choice

The expenditure multiplier equals

• A) MPC - MPS where MPC is the marginal propensity to consume and MPS is the marginal propensity to consume.
• B) APC - APS where APC is the average propensity to consume and APS is the average propensity to save.
• C) 1/(slope of AE curve).
• D) 1/(1 - slope of AE curve).

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