Consider a Simple Macro Model with a Constant Price Level

question 3

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.In the extreme situation where the marginal propensity to spend is one,the simple multiplier is

• A)zero.
• B)a positive number between zero and one.
• C)one.
• D)a positive number greater than one but less than infinity.
• E)infinitely large.

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Definitions:

Null Hypothesis

A statement or hypothesis that suggests there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Standard Deviation

A measure of how spread out numbers are in a dataset, indicating the variation or dispersion around the mean.

Programming Ability

The skill or competence in creating and understanding computer programs and software using different programming languages.

Null Hypothesis

The default assumption in statistical analysis that there is no significant difference or effect.