If the MPC Is 0

question 76

Multiple Choice

If the MPC is 0.75 and the tax rate is 10%,the expenditure multiplier will equal

• A) 0.48.
• B) 1.48.
• C) 3.08.
• D) 3.6.

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Definitions:

1776

The year associated with the Declaration of Independence of the United States, marking its foundation.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often leading to market inefficiencies and lack of competition.

Price Effect

The effect of a price change of a product or service on its supply or demand.

Oligopolist

A firm in an industry with only a small number of producers.