Question 37
MediumOriginal questionIf the MPC were 0, the investment multiplier would be
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
k = 1 ÷ (1 − 0) = 1: income rises only by the extra investment, with no further rounds.
- Concept
- Smallest multiplier
- Typical timeTypical
- 70 s
- Your timeYours
- —
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