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

Related Mcqs:

1. If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?

   A. 10
   B. 1
   C. 9
   D. 0.1

2. 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

3. The marginal propensity of consume is equal to ?

   A. Total spending / total consumption
   B. Total consumption / total income
   C. Change in consumption / change in income
   D. Change in consumption / change in savings

4. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

5. An increase in the marginal propensity to consume will ?

   A. increase the size of the multiplier
   B. Increase the marginal propensity to save
   C. Decrease national income
   D. Reduce injections into the economy

6. The marginal propensity to consume is equal to ?

   A. Total spending / total consumption
   B. Total consumption / total income
   C. change in consumption / change in income
   D. Change in consumption / change in savings

7. If the MPC is 0.5 the multiplier is ?

   A. 2
   B. 1/2
   C. 0.2
   D. 20

8. 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

9. 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

10. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?

    A. 0.8
    B. 800
    C. 810
    D. 0.81