If the MPC = 0

question 190

Multiple Choice

If the MPC = 0.9, what is the government purchases multiplier?

• A)0.10
• B)1
• C)1.11
• D)10

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Definitions:

Disbursements

The act of paying out or disbursing money, often related to the operational expenses of a business.

Interest Rate

The percent of principal charged by the lender for the use of its money or the return earned on an investment.

Net Float

The difference between checks written against a bank account and those that have been cleared, affecting the account's available balance.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.