If the marginal propensity to consume is 0.8, the value of the multiplier is:     5.     1.25.     2.     0.8.

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
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  1. If the marginal propensity to consume is 0.8, the value of the multiplier is:
       
    5.
       
    1.25.
       
    2.
       
    0.8.
     
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