Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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