Question: Because the multiplier is a function of the marginal propensity to spend, it Question 4 options: is not a function of the marginal propensity to
Because the multiplier is a function of the marginal propensity to spend, it Question 4 options: is not a function of the marginal propensity to save. has a larger impact on national expenditure than on national income. might be higher in an economy where the government provides health care and retirement income out of taxes, so the Marginal propensity to save is lower. is theoretically infinite is post-capitalist economies
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
