In the Simple Aggregate Expenditure Model Where All Components of Aggregate

question 109

Multiple Choice

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, what is the value of the multiplier if the marginal propensity to save is 0.1?

• A) 1
• B) 4
• C) 5
• D) 10

---

Definitions:

Stigmatizing

The action of branding someone or something as disgraceful or unacceptable based on certain characteristics or behaviors.

Ethnic Background

A person's heritage or cultural background, including the nationality, culture, ancestry, and language(s) associated with their family or ancestors.

Social Diversion

Activities or behaviors intended to provide an escape from the routines of daily life or to distract from societal pressures and norms.

Legal Sanction

Punishments or penalties imposed for breaking legal rules, which can range from fines and community service to imprisonment.