If the MPC Is 0

question 32

Multiple Choice

If the MPC is 0.5, what must the spending multiplier be?

• A) 1.2
• B) 2
• C) 2.25
• D) 2.5

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Definitions:

Implied Authority

Implied Authority refers to the powers not explicitly granted but deemed necessary to carry out the duties officially entrusted to an individual or entity.

Management Compensation

The payment or remuneration provided to executives and managers for their services to an organization.

Corporate Policy

Guidelines and rules established by a company to govern its activities and decisions, reflecting its culture and objectives.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith which they believed to be in the best interest of the company.