If the MPC is 0.6 and there are no imports or income taxes, the multiplier is

A) 6. B) 0.4. C) 2.5. D) 0.6. E) 1.7.


C

Economics

You might also like to view...

In the DuPont cellophane case, rivals accused DuPont of monopolizing cellophane. DuPont claimed that the relevant market was flexible wrapping material, such as wax paper and aluminum foil, rather than just cellophane. DuPont won the case. What type of evidence constituted DuPont’s defense?

What will be an ideal response?

Economics

Rent seeking activities by special interest groups result in

a. greater economic activity by promoting efficiency in government b. lower economic activity by diverting resources to less-productive or nonproductive uses c. a more equal distribution of income and wealth in the nation d. lower expenditures by government through an increase in taxes e. greater efficiency in the private economy and increased wealth for society

Economics

Suppose a firm is considering locating a manufacturing facility in a poorer country where wage rates are much lower than in the United States

Why would social capital be a factor in their decision to relocate? Explain in terms of the impact that a lack of social capital may have on the marginal revenue product

Economics

A voluntary export restraint is an agreement negotiated by two countries that places ________ that can be imported by one country from another country

A) a tax on goods B) a minimum quantity of a good C) a numerical limit on the quantity of a good D) quality standards on goods

Economics