In a Macro Model Where the Marginal Propensity to Consume

question 55

Multiple Choice

In a macro model where the marginal propensity to consume out of disposable income is 0.8,the net tax rate is 0.25,and the marginal propensity to import is 0.12,the simple multiplier will be

• A)0.480.
• B)1.471.
• C)1.923.
• D)2.083.
• E)2.110.

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