When Calculating the Multiplier for Government Purchases (G), We

question 42

Multiple Choice

When calculating the multiplier for government purchases (G) , we

• A)must know the marginal propensity to save (mps)
• B)must know the income tax rate (t)
• C)must know the average propensity to consume (apc)
• D)can ignore the size of the marginal propensity to consume (mpc)
• E)both A)and B)

---

Definitions:

Repetitive Process Line

A manufacturing process in which products are made through a sequential and continuous manner, characterized by a highly standardized production flow.

Floral Arrangement

The art of selecting and organizing flowers and foliage into a pleasing design, often for decorative purposes.

Automobiles

Wheeled motor vehicles used for transportation, typically powered by internal combustion engines or electric motors.

Arnold Palmer Hospital

A renowned children’s hospital and medical research facility, known for specialized pediatric care.