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:

Sterilized

Made free from all living microorganisms, often through the application of heat, radiation, or chemical agents.

Reproductive Stage

The phase in an organism's life cycle in which it can produce offspring, involving processes such as mating, fertilization, and gestation.

Infant Mortality Rate

The number of deaths of infants under one year old per 1,000 live births in a given year, a critical indicator of public health.

World's Income

The total earnings or output produced globally, comprising the aggregate income of all individuals, companies, and countries worldwide.