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:

Dividend Income

Income earned from owning shares of a company, typically paid out from the company's profits to shareholders at regular intervals.

Investment Guidelines

A set of principles or rules designed to guide the management of investments, ensuring they meet specific objectives and constraints.

Money Market Accounts

Interest-bearing accounts offered by banks and credit unions, providing higher interest rates than savings accounts.

Diversify Investments

A strategy to spread investments across various assets to reduce risk.