The MPC in the U.S. economy has been estimated to be near 0.95. If this is an accurate measure, then the numerical value for the multiplier would be
A. 0.9.
B. 1.8.
C. 9.5.
D. 10.0.
E. 20.0.
Answer: E
You might also like to view...
Which of the following best represents an indirect tax?
A) federal income tax B) state income tax C) local property tax D) sales taxes paid on goods and services
A removal or depletion tax on an open-access resource increases the marginal private cost of using the resource by
a. zero b. the amount of the tax c. the marginal product of the resource d. the average private cost of using the resource e. the average social cost of using the resource
More than one-third of the unemployed are recent entrants into the labor force
a. True b. False Indicate whether the statement is true or false
Suppose a shortage for good A exists. Given this information, we know that
A) the price of good A will tend to rise toward the equilibrium level. B) the price of good A will tend to fall toward the equilibrium level. C) a government price floor should be imposed above the current price so that the market can work more effectively. D) a government price ceiling should be imposed above the current price so that the market can work more effectively.