In an economy with no income taxes or imports, the multiplier equals
A. 1/MPC.
B. 1/MPS.
C. 1/(1 - MPS).
D. 1/(MPC + MPS).
Answer:B
In an economy with no income taxes or imports, the multiplier equals
A. 1/MPC. B. 1/MPS. C. 1/(1 - MPS). D. 1/(MPC + MPS).