If the Marginal Propensity to Consume Is 0

question 251

Multiple Choice

If the marginal propensity to consume is 0.75 and marginal propensity to import is 0.15, then the multiplier in an open economy is:

• A) 4.
• B) 10.
• C) 8.3.
• D) 2.5.

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Definitions:

Numerical Amount

A quantity or value expressed in numbers.

Written Amount

The value of a document or instrument stated in words.

Five And 62/100

A manner to express the numeric value 5.62, often found in financial documents.

Cash Money

Physical money in the form of banknotes and coins, as opposed to electronic or digital forms of currency.