In a Simple Model of the Economy,if the MPC Is

question 83

Multiple Choice

In a simple model of the economy,if the MPC is 0.8,the multiplier will equal

• A) 0.2.
• B) 0.8.
• C) 1.25.
• D) 5.

---

Definitions:

Low Farm Income

An economic condition where farmers earn less revenue from their produce, often due to factors like falling prices, poor yields, or high costs of inputs.

Food, Conservation, and Energy Act

A federal law in the United States that governs agricultural and food policy, often known as the Farm Bill, encompassing aspects such as nutrition assistance, crop insurance, and conservation efforts.

Freedom to Farm Act

A U.S. law enacted in 1996 aimed at reducing government subsidies to farmers and allowing them more freedom in the crops they plant.

Countercyclical Payments

Payments made by governments to individuals or companies during economic downturns to stabilize the economy, often in the form of subsidies or tax rebates.