If consumers spend 75 cents out of every extra dollar received, the:

A. MPS is 0.75.
B. MPC is 0.25.
C. Multiplier is 4.
D. Multiplier is 7.5.


C. Multiplier is 4.

Economics

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If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:

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An industry is in ________ if firms have no incentive to enter or exit in the ________ run.

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Economics