The multiplier is

A. the percentage of a given change in income that goes towards consumption.
B. the part of consumption that is independent of the level of disposable income.
C. the number which is multiplied by an autonomous change which gives the change in the equilibrium level of real GDP.
D. the proportion of total disposable income that is consumed.


Answer: C

Economics

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Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy?

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Refer to the accompanying table. Pat's opportunity cost of delivering a pizza is making: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015 

A. 2/3 of a pizza. B. 12 pizzas. C. 10 pizzas. D. 3/2 of a pizza.

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If the government imposes a price ceiling that is lower than the market clearing price, then

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