If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
A. 0.
B. 1.
C. 4.
D. 5.
Answer: C
You might also like to view...
The average return for supplying entrepreneurial ability is the entrepreneur's
A) accounting profit. B) normal profit. C) explicit profit. D) economic profit.
All else equal, what is likely to happen to the unemployment rate during a recession?
a. It increases as real GDP increases. b. It decreases as real GDP remains the same. c. It increases as real GDP decreases. d. It decreases as cyclical unemployment decreases. e. It decreases as real GDP decreases.
If a firm increases its output and finds that its average total cost decreases as a result, this implies that
a. marginal cost exceeds average total cost. b. the cost of producing an additional unit of output is more than the average total cost. c. average fixed cost is increasing. d. average total cost exceeds marginal cost.
The market for novels is
a. perfectly competitive. b. a monopoly. c. monopolistically competitive. d. an oligopoly.