Suppose the Marginal Propensity to Consume Is 0

question 80

Multiple Choice

Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent.The spending multiplier for this economy is equal to _____.

• A)0.54
• B)0.80
• C)1.25
• D)1.41
• E)1.85

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