If MPC=0.8 and MPM=0.05,the Foreign Trade Multiplier Is

question 24

Multiple Choice

If MPC=0.8 and MPM=0.05,the foreign trade multiplier is:

• A) 5
• B) 4
• C) 3
• D) 2

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Definitions:

Personal Use

Utilization of property or services for individual or family needs, rather than for business or investment purposes.

Rental

A leasing agreement where an asset is leased out by the owner to another party in exchange for payment.

Royalties

Payments made to authors, artists, or other creators for the use or sale of their original work.

Copyrighted Material

Intellectual property that is protected by copyright law, which gives the creator exclusive rights to use and distribute their work.