If MPC is two times the MPS, then the spending multiplier is: 1/3 2 O cannot be determined from the given information O 3 2/3

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.4P
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If MPC is two times the MPS, then the spending multiplier is:
1/3
2
O cannot be determined from the given information
O 3
2/3
Transcribed Image Text:If MPC is two times the MPS, then the spending multiplier is: 1/3 2 O cannot be determined from the given information O 3 2/3
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