If the MPC Is 0

question 113

Multiple Choice

If the MPC is 0.75, the government spending multiplier is

• A) 4.
• B) 3.
• C) 2.5.
• D) 1.75.

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Definitions:

Probability

A measure quantifying the likelihood that an event will occur, ranging from 0 (impossible event) to 1 (certain event).

Transponders

Electronic devices that receive and respond to signals automatically, used especially in navigation and communication.

Toll Booth

A station on a bridge, road, or tunnel where travelers pay a fee or toll for access to continue their journey.

Continuous Probability Distribution

A function that describes the likelihood of any outcome of a continuous random variable within a range.