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

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.)

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 the MPC is 0.95, then a $12 million increase in disposable income will: a. increase consumption by $950 million. b. increase saving by $11.4 million. c. increase saving by $0.6 million. d. increase consumption by $6 million.

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).

A decrease in the MPC may cause ______________.a.A fall in the equilibrium incomeb.An increase in the equilibrium income.c.It does not affect the equilibrium incomed.The government spending multiplier riseClear my choiceQuestion 8Not yet answeredMarked out of 1.00Flag questionQuestion textThe variable that connects the market of money and the market of goods via investment spending is ________.a.The MPCb.The interest ratec.The MPSd.The CPI