In a Simple Macro Model Where the Marginal Propensity to Consume

question 100

Multiple Choice

In a simple macro model where the marginal propensity to consume out of disposable income is 0.8,the net tax rate is 0.25,and the marginal propensity to import is 0.12,the simple multiplier will be

• A)0.480.
• B)1.471.
• C)1.923.
• D)2.083.
• E)2.110.

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Definitions:

Social Loafing

The occurrence where people put in less effort towards accomplishing an objective as part of a group than they do when working individually.

Exert Less Effort

A phenomenon where individuals decrease their effort output in situations where they perceive lesser necessity for intense work.

Group's Leader

The individual who takes on the role of directing, influencing, and coordinating the activities of a group towards achieving its objectives.

Certain Traits

Specific characteristics or qualities that are consistent and enduring in an individual, contributing to their personalities and behaviors.