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If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

September 11, 2021May 31, 2019 by admin

If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

A. 4
B. 7.5
C. 5
D. 0.75

Categories Economics Mcqs, Macroeconomic Policy Tools

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

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