If the MPS Is 0

question 194

Multiple Choice

If the MPS is 0.25 and the MPC is 0.6, then the MPM

• A) is 0.85.
• B) is 0.35.
• C) is 0.15.
• D) cannot be determined from the given information.

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Definitions:

Aggregate Supply

The aggregate amount of products and services that suppliers in the economy can and are ready to provide across varying price points.

Macroeconomic Variables

Indicators or factors that reflect the overall health and performance of a country's economy, such as GDP, unemployment rates, and inflation.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Net Exports

The difference between a country's total value of exports and its total value of imports; a key component of a nation's GDP.