If the MPC Is 5/6 Then the Multiplier Is

question 74

Multiple Choice

If the MPC is 5/6 then the multiplier is

• A)6/5,so a $200 increase in government spending increases aggregate demand by $240.
• B)5,so a $200 increase in government spending increases aggregate supply by $1000.
• C)6,so a $200 increase in government spending increases aggregate demand by $1200.
• D)6/5,so a $200 increase in government spending increases aggregate supply by $1200.

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Definitions:

Distribution Systems

Distribution systems are networks that companies use to move products from production facilities to end consumers, including warehouses and shipping processes.