If in an Economy,the MTR = 0

question 148

Multiple Choice

If in an economy,the MTR = 0.2,the MPS = 0.25,and the MPM = 0.15,what is the value of the multiplier?

• A)1.67
• B)2
• C)2.22
• D)2.5
• E)3.33

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Definitions:

Equilibrium Price

The price level where the supply of goods meets the demand for those goods.

Loanable Funds

The total funds available in the financial markets for borrowing, which come from savings and are used for investment.

Borrowed

Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.

Demand

The quantity of goods or services that consumers are willing and able to purchase at various prices during a given time period.