If the Multiplier for a Change in Autonomous Expenditure Is

question 65

Multiple Choice

If the multiplier for a change in autonomous expenditure is 10 and there are no income taxes or imports, then the MPC is

• A) 0.9.
• B) 0.1.
• C) 1.0.
• D) 9.0.

---

Definitions:

Labor Income

Earnings derived from employment, including wages, salaries, bonuses, and other compensation for work performed.

Lump Sum Payment

A single payment made at a particular time, as opposed to a series of payments made over time.

Leisure

Free time available to an individual excluding time spent on work, essential activities, or commitments.

Bushel

A volume measure used in agriculture, particularly in the United States, equivalent to 8 dry gallons or about 35.24 liters.