If Government (or Investment) spending is increased by $10 with MPC = 0.75 , then the multiplier will be _________. (Assume that no other component in AD depends on income, just the consumption function.)

With an MPC of 0.6, the expenditures multiplier will be equal to

The government spending multiplier is _____________.a.indirectly proportional to the MPCb.Lower than the tax revenuec.directly proportional to the MPCd.Higher than the MPC

Suppose that both government purchases and taxes increase by the same amount. The multiplier for this "balanced budget" increase in government purchases is:1 / (1 − MPC).1.−MPC / (1 − MPC).MPC2 / (1 − MPC).

If the marginal propensity to consume is 0.75, the multiplier for government purchases of goods and services will be:Choose one answer from the options below.0.751.3347.5

The higher is the MPS, _____________.a.Lower is the multiplier.b.Higher is the investment spendingc.Higher is the equilibrium income.d.Higher is the multiplier