Consider a Simple Macro Model with a Constant Price Level

question 146

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend is 0.9,the simple multiplier is

• A)0.1.
• B)0.9.
• C)1.0.
• D)1.1.
• E)10.0.

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Definitions:

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used in many areas of statistical analysis.

Symmetrically Distributed

A description of a data distribution where, on a graph, the left and right sides of the distribution are approximately mirror images of each other.

Normally Distributed

A type of continuous probability distribution characterized by a symmetrical, bell-shaped curve, where the mean, median, and mode are all equal.

Standard Deviation

A measure of the dispersion or variability in a set of values, indicating how much individual values deviate from the mean.