If the MPC Is 0

question 88

Multiple Choice

If the MPC is 0.6 and there are no imports or income taxes, the expenditure multiplier is

• A) 0.4.
• B) 0.6.
• C) 2.5.
• D) 6.
• E) 1.7.

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than compensating the other party with money.

Breach of Contract

The failure to perform as stipulated by the terms of a legally binding agreement.

Verbal Agreement

A contract or agreement made through spoken words rather than in writing, which can be legally binding under certain conditions.

Specific Performance

A legal remedy requiring a party to perform a specific act, often used in contracts when monetary compensation is inadequate.