Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 4R, Problem 21MCQ
To determine
To determine the spending multiplier using Marginal Propensity to Consume as given.
Expert Solution & Answer
Explanation of Solution
The spending multiplier given MPC
Spending multiplier
Hence, the correct option is ‘e’.
Mathematically, the rest of the options are incorrect.
Economics Concept Introduction
The spending multiplier shows what impact a change in autonomous spending will have on total spending and aggregate demand in the economy. Its mathematical calculation can be done using the formula
Chapter 4R Solutions
Krugman's Economics For The Ap® Course
Ch. 4R - Prob. 1MCQCh. 4R - Prob. 2MCQCh. 4R - Prob. 3MCQCh. 4R - Prob. 4MCQCh. 4R - Prob. 5MCQCh. 4R - Prob. 6MCQCh. 4R - Prob. 7MCQCh. 4R - Prob. 8MCQCh. 4R - Prob. 9MCQCh. 4R - Prob. 10MCQ
Ch. 4R - Prob. 11MCQCh. 4R - Prob. 12MCQCh. 4R - Prob. 13MCQCh. 4R - Prob. 14MCQCh. 4R - Prob. 15MCQCh. 4R - Prob. 16MCQCh. 4R - Prob. 17MCQCh. 4R - Prob. 18MCQCh. 4R - Prob. 19MCQCh. 4R - Prob. 20MCQCh. 4R - Prob. 21MCQCh. 4R - Prob. 22MCQCh. 4R - Prob. 23MCQCh. 4R - Prob. 24MCQCh. 4R - Prob. 25MCQCh. 4R - Prob. 1FRQCh. 4R - Prob. 2FRQCh. 4R - Prob. 3FRQCh. 4R - Prob. 1CTQCh. 4R - Prob. 2CTQCh. 4R - Prob. 3CTQCh. 4R - Prob. 5CTQ
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