Question
If the government spending multiplier is found to be 1, what is the marginal propensity to consume?
Answer: Option A
:
A
When c=0,1(1−c)=1. The marginal propensity to consume in this case is zero. However, this is not a possibility in reality.
Was this answer helpful ?
:
A
When c=0,1(1−c)=1. The marginal propensity to consume in this case is zero. However, this is not a possibility in reality.
Was this answer helpful ?
More Questions on This Topic :
Question 5. Fiscal Policy refers to a policy of:....
Question 7. Which among the following is incorrect?....
Question 9. Customs duty is imposed on:....
Latest Videos
Latest Test Papers
Submit Solution