If the MPC = 0

question 118

Multiple Choice

If the MPC = 0.75,then the government purchases multiplier is about

• A)1.33.
• B)7.
• C)4.
• D)3.

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Definitions:

Jointly Maximize Profits

A strategy where firms coordinate their actions to increase their collective profits rather than competing with one another.

Agreement Breach

A failure to fulfill the terms of a contract or agreement, which can lead to legal action for resolution.

Equilibrium Price

The price that balances quantity supplied and quantity demanded.

Demand Schedule

A table that shows the quantity of goods or services that consumers are willing and able to purchase at various price levels.