If the MPC Is 0

question 106

Multiple Choice

If the MPC is 0.5, then the spending multiplier must be:

• A) 1.2.
• B) 2.
• C) 2.25.
• D) 2.5.

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Definitions:

Pancreatic Juices

Digestive fluids produced by the pancreas that contain enzymes to help break down carbohydrates, proteins, and fats.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, involved in the digestion of fats.

Small Intestine

A long, coiled part of the digestive system where most of the digestion and absorption of nutrients occurs.

Diarrhea

A condition characterized by frequent and watery bowel movements, often indicating gastrointestinal distress or infection.