If Multiplier is 1/1-MPC and MPS+MPC=1, MPC= Marginal propensity to consume and MPS= marginal propensity to save. Using this formula and MPC is 0.9 multiplier is __________ and if MPS =0.4 multiplier is ________________ a 10 and 10 b 1 and 2.5 c 10 and 2.5 d 1.111 and 1.666
If Multiplier is 1/1-MPC and MPS+MPC=1, MPC= Marginal propensity to consume and MPS= marginal propensity to save. Using this formula and MPC is 0.9 multiplier is __________ and if MPS =0.4 multiplier is ________________ a 10 and 10 b 1 and 2.5 c 10 and 2.5 d 1.111 and 1.666
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
Problem 2DQ
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If Multiplier is 1/1-MPC and MPS+MPC=1, MPC=
Marginal propensity to consume and MPS= marginal propensity to save. Using this formula
and MPC is 0.9 multiplier is __________ and if MPS =0.4 multiplier is ________________
a |
10 and 10 |
|
b |
1 and 2.5 |
|
c |
10 and 2.5 |
|
d |
1.111 and 1.666 |
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