If the MPC = 4/5, Then the Government Purchases Multiplier

question 118

Multiple Choice

If the MPC = 4/5, then the government purchases multiplier is

• A)5/4.
• B)4/5.
• C)5.
• D)20.

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Definitions:

Statistic

Numeric characteristic of a sample.

Region

An area or division, especially part of a country or the world having definable characteristics but not always fixed boundaries.

T-statistic

In statistical testing, it represents the calculated difference between sample means relative to the variability observed in the samples, serving as basis for hypothesis testing.

Negative Value

A numerical value less than zero, indicating a deficit or decrease when compared to a baseline of zero.