If There Are No Taxes or Imports and MPC =

question 233

Multiple Choice

If there are no taxes or imports and MPC = 0.5, the multiplier equals

• A) 0.5.
• B) 5.0.
• C) 6.0.
• D) 2.0.

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Definitions:

Inflationary Pressures

Economic conditions or factors that lead to an increase in the general price level of goods and services.

U.S. Currency

The form of money issued by the United States government, primarily in the form of Federal Reserve notes (dollars).

U.S. Assets

Properties, investments, and other financial resources owned by individuals, businesses, and the government in the United States.

Gold Standard

A monetary system where a country's currency has a value directly linked to gold, allowing it to be exchanged for a specific amount of gold.