Consider a Simple Macro Model with Demand-Determined Output

question 85

Multiple Choice

Consider a simple macro model with demand-determined output.In such a model,the smaller the marginal propensity to spend,the

• A)smaller the MPS.
• B)smaller the simple multiplier.
• C)larger is investment.
• D)larger the MPC.
• E)larger the simple multiplier.

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Definitions:

Intra-Entity Debt Transactions

Financial obligations or loans between entities within the same corporate group, not necessarily evidenced in consolidated financial statements until settled externally.

Amortization Process

The systematic reduction of a loan or the spreading out of capital expenses over a fixed period of time.

Investment Account

An account holding securities, cash, and other assets managed by an investment dealer or manager for the benefit of the investor.

Variable Interests

Interests in an entity that change based on changes in the entity's net asset value, income, or cash flows.