uestion 33 Assume that Canadian government taxes away $0.25 of each dollar of new income, that 25% of the remaining $0.75 of disposable income is spent on imports, and that 4% of disposable income is sav "A. $0.47 of each new dollar of income is spent on domestic consumption items and the spending multiplier is 1.89 B, MPC = MPW. Therefore, spending multiplier is 1.0 C. $0.53 of each new dollar of income is spent on domestic consumption items and the spending multiplier is 2,13 D. 75% of each new dollar of income is spent on domestic consumption items and the spending multiplier is I.$