If the MPC Were to Increase from 0

question 61

Multiple Choice

If the MPC were to increase from 0.75 to 0.8, then the spending multiplier would:

• A) increase from 4 to 5.
• B) decrease from 5 to 4.
• C) increase from 0.20 to 0.25.
• D) decrease from 1.25 to 1.20.

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Definitions:

Big Data

Large and complex data sets that traditional data processing application software is inadequate to deal with.

Programming Language

A formal language comprising a set of instructions used to produce various kinds of output, including software programs, that computers can execute or interpret.

Actual Rate

The real interest rate or return on an investment, taking into account inflation.

Interest

The cost of borrowing money or the payment made to a lender by a borrower for the use of money, typically expressed as an annual percentage rate.