If the MPC is 0.5 the multiplier is ?

Related Mcqs:

1. Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?

   A. 4
   B. 25
   C. 6
   D. 2.5

2. Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?

   A. 5
   B. 8
   C. 2
   D. 1.25

3. If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

   A. 4
   B. 7.5
   C. 5
   D. 0.75

4. Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?

   A. Rs80 million
   B. Rs20 million
   C. Rs 15 million
   D. Rs26.67 million

5. An increase in the marginal propensity to consumer (MPC) ?

   A. raises the value of the multiplier
   B. has no impact on the value of the multiplier?
   C. rarely occurs because the MPC is set by congressional legislation
   D. lowers the value of the multiplier

6. The multiplier tells us how much __________ changes after a shift in ____________?

   A. consumption income
   B. investment output
   C. savings investment
   D. output aggregate demand

7. The multiplier is calculated as___________?

   A. 1(1-MPC)
   B. 1/MPS
   C. 1/MPC
   D. a or b

8. The total multiplier for the economy will reflect ?

   A. MPC and MPT
   B. MPT and MPZ
   C. MPC and MPZ
   D. MPC, MPT and MPZ

9. In an Open economy leakage to imports ____________ the value of the multiplier ?

   A. reduce
   B. increase
   C. do not change
   D. None of the above

10. A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

    A. reduce
    B. have no effect on
    C. increase
    D. double