If Consumption Spending Is the Only Variable of Aggregate Expenditure

question 29

True/False

If consumption spending is the only variable of aggregate expenditure dependent on income,the multiplier is MPC/(1 - MPC).

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Definitions:

Prices Received

The amount of money that producers get for selling one unit of a good or service, often used in the context of agriculture or commodities.

Taxpayers

Individuals or entities that are required to make payments to a governmental authority, often based on income or property ownership.

Parity Concept

The idea that year after year the sale of a specific output of a farm product should enable a farmer to purchase a constant amount of nonagricultural goods and services.