The government spending multiplier is _____________.a.indirectly proportional to the MPCb.Lower than the tax revenuec.directly proportional to the MPCd.Higher than the MPC

If Government (or Investment) spending is increased by $10 with MPC = 0.75 , then the multiplier will be _________. (Assume that no other component in AD depends on income, just the consumption function.)

With an MPC of 0.6, the expenditures multiplier will be equal to

Suppose that both government purchases and taxes increase by the same amount. The multiplier for this "balanced budget" increase in government purchases is:1 / (1 − MPC).1.−MPC / (1 − MPC).MPC2 / (1 − MPC).

Government expenditure is more effective in economies when _______- . Fill in the blanks.MPS value is lowDoesn?t depend on MPC and MPS valuesMPC value is lowMPS value is high

The higher is the MPS, _____________.a.Lower is the multiplier.b.Higher is the investment spendingc.Higher is the equilibrium income.d.Higher is the multiplier