adjectivamr0g

2023-02-21

What is the value of the government spending multiplier if marginal propensity to consume is 0.6?

A)0.1333

B)0.4

C)1.333

D)2.5

A)0.1333

B)0.4

C)1.333

D)2.5

Haylie Long

Beginner2023-02-22Added 7 answers

The correct option is B 2.5

The multiplier is given by 1(1−c).

So, when c = 0.6, the multiplier is 2.5.

The multiplier is given by 1(1−c).

So, when c = 0.6, the multiplier is 2.5.

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