If the marginal propensity to consume is 0.8, what is the value of the expenditure multiplier?
a. 0.2
b. 0.8
c. 1.25
d. 5.0
e. 8.0
D
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In the production possibilities frontier model, an unattainable point lies
A) both on and outside the production possibilities frontier. B) only outside the production possibilities frontier. C) only inside the production possibilities frontier. D) only on the production possibilities frontier itself. E) There are no unattainable points in the production possibilities model.
In which of the following ways is the private market sector similar to the public sector in terms of decision making?
A) Prices determine the demand for goods and services in each sector. B) There is competition for scarce resource in both sectors. C) Both sectors may use a type of "force" if necessary. D) Votes by individual voters are basically equal in importance with dollars spent by individuals on goods.
The incentive to lend increases as the real rate of interest decreases.
Answer the following statement true (T) or false (F)
Using the above table, the net domestic product is (in billions of dollars)
A. 6,500. B. 8,300. C. 9,700. D. 8,000.