If the Marginal Propensity to Import (MPM) Equals 0

question 25

Multiple Choice

If the marginal propensity to import (MPM) equals 0.10 and the multiplier equals 5.0, the marginal propensity to consume must equal

• A)0.99
• B)0.95
• C)0.90
• D)0.85
• E)0.50

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