In a closed private economy, income is $50 billion and consumption is $40 billion. When income rises by 10 percent, cons
Posted: Mon Mar 21, 2022 4:30 pm
In a closed private economy, income is $50 billion and consumption is $40 billion. When
income rises by 10 percent, consumption rises by 9 percent. The MPS over the relevant
income range is:
A. 0.11 and the multiplier is 9.09
B. 0.28 and the multiplier is 3.57
C. 0.62 and the multiplier is 1.61
D. 0.72 and the multiplier is 3.57
income rises by 10 percent, consumption rises by 9 percent. The MPS over the relevant
income range is:
A. 0.11 and the multiplier is 9.09
B. 0.28 and the multiplier is 3.57
C. 0.62 and the multiplier is 1.61
D. 0.72 and the multiplier is 3.57