Suppose the Marginal Propensity to Consume Is 0

question 37

Multiple Choice

Suppose the marginal propensity to consume is 0.5, the marginal propensity to tax is 0.3 and the marginal propensity to import is 0.25 in an open economy with government sector. What is the approximate size of the multiplier?

• A) 0.95
• B) 1
• C) 0.89
• D) 0.7

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Definitions:

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The ideologies, beliefs, and policies of Abraham Lincoln, the 16th President of the United States, especially his views on slavery, democracy, and national unity.

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A war between groups within the same country or state, often characterized by intense violence and lasting social and economic impact.