If the MPC = 0

question 94

Multiple Choice

If the MPC = 0.75, then the spending multiplier must be:

• A) 3
• B) 4
• C) 5
• D) 1.25

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Definitions:

Shared Knowledge

Information, ideas, or understanding that is common to a group of people and forms part of their collective consciousness or culture.

Generations

Groups of individuals, typically within a family, who are born and live around the same time, marking distinct stages in societal or familial development.

Collectivism

A cultural value that emphasizes the importance of the group or community over individual achievements or desires.

Individualism

A social and political philosophy that emphasizes the moral worth of the individual over collective or state interests.