Question
According to Keynesian economics, a change in government purchases and taxes will change the real GDP by some multiple amount. For ex., if the marginal
According to Keynesian economics, a change in government purchases and taxes will change the real GDP by some multiple amount. For ex., if the marginal propensity to consume, MPC, equals 0.75, then
a. 1 is the multiplier
b. 2 is the multiplier
c. 4 is the multiplier
d. 5 is the multiplier
e. all of the above statements are correct
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Basic Economics
Authors: Frank V. Mastrianna
16th edition
1111826641, 978-0357706664, 978-1111826642
