If the Marginal Propensity to Consume (MPC) Equals 0

question 20

Multiple Choice

If the marginal propensity to consume (MPC) equals 0.75 (3/4) and the multiplier equals 2.0, the marginal propensity to import (MPM) must equal

• A)0.25
• B)0.50
• C)0.75
• D)1.00
• E)1.25

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