If the marginal propensity to save (MPS) is 0.1, the spending multiplier will be

A. 1.1.
B. 10.
C. 0.9.
D. 0.1.


Answer: B

Economics

You might also like to view...

Extractive institutions:

A) privilege many at the expense of a few. B) privilege a few at the expense of many. C) are restricted to command economies. D) are restricted to market economies.

Economics

A profit-maximizing firm will hire inputs until MRP = P of the input.

Answer the following statement true (T) or false (F)

Economics

A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.


A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise

Economics

A period in which the economy is growing at a rate significantly below normal is called a(n):

A. boom. B. expansion. C. recession. D. peak.

Economics