If the marginal propensity to consumer is 0.9, what is the value of the expenditure multiplier?
a. 1.0
b. 1.9
c. 10
d. 0.1
e. 0.9
C
You might also like to view...
Refer to the figure above. The producer surplus before the imposition of the tax is given by the area ________
A) GHF B) GAE C) JBHF D) JBC
As more people start using an operating system, more applications are developed for it. This makes the system more valuable to individual users. This is an example of a ________
A) pecuniary externality B) network externality C) positive externality D) negative externality
The marginal factor cost is the
A) additional revenue obtained from a one-unit change in labor input. B) additional revenue obtained from a one-unit change in output. C) change in output resulting from the addition of one more worker. D) cost of using an additional unit of an input.
The interest-rate effect is the impact on real GDP caused by the inverse relationship between the price level and the interest rate
a. True b. False Indicate whether the statement is true or false