Question
An economy with no income taxes or imports has a marginal propensity to consume of 0.75. What is the multiplier in the long run? Question
An economy with no income taxes or imports has a marginal propensity to consume of 0.75.
What is the multiplier in the long run?
Question content area bottom
Part 1
The multiplier in the long run is _______.
A.
4
B.
1.33
C.
0
D.
greater than 1.33 and less than 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Labor and Employment Law Text and Cases
Authors: David Twomey
15th edition
1133188281, 978-1133711841, 1133711847, 978-1285247632, 978-1133188285
