If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:
a. 1.
b. 9.
c. 10.
d. 90.
c
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The bottom 80 percent of the families in the United States receive approximately ________ percent of total income.
A. 90 B. 50 C. 10 D. 20
If the total money supply is $6 trillion, real Gross Domestic Product (GDP) is $9 trillion and the price level is 2, then the equation of exchange tells us that velocity equals
A. 3. B. 13.5. C. 18. D. 27.
Refer to the diagram for athletic shoes. If the current output of shoes is Q 3 , then:
A. resources are being allocated efficiently to the production of shoes.
B. society would consider additional units of shoes to be more valuable than alternative
products.
C. society would consider additional units of shoes to be less valuable than alternative
products.
D. society would experience a net gain by producing more shoes.
Estimation of the present value of lost current and future income must consider
A. any risk of unemployment. B. the expected length of working life. C. any possible future raises. D. all of the options are correct.