Assume There Is No Government or Foreign Sector

question 148

Multiple Choice

Assume there is no government or foreign sector. If the MPS is 0.05, the multiplier is

• A) 0.95.
• B) 10.
• C) 20.
• D) 50.

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Definitions:

Government Policy

Actions and strategies designed and implemented by government bodies to achieve specific societal goals.

Producer Surplus

The difference between the amount a producer is paid for a good versus the minimum amount they would be willing to accept for the good.

Government Policy

Official strategies or principles that a government adopts and implements to guide decisions and achieve rational outcomes.

Producer Surplus

The discrepancy in the expected versus actual earnings of sellers for goods or services.