In a Simple Macro Model with Demand-Determined Output,the Simple Multiplier

question 74

Multiple Choice

In a simple macro model with demand-determined output,the simple multiplier is equal to 1/(1-z) ,where z equals the

• A)average propensity to spend.
• B)average propensity not to spend.
• C)level of autonomous expenditure.
• D)marginal propensity to spend.
• E)marginal propensity not to spend.

Understand the definition and underlying causes of human trafficking.

Examine the impact of globalization on different types of nations and strategies to mitigate its negative effects.

Comprehend the relevance and limitations of per capita GNI as an economic indicator.

Explore the premises of modernization theory and its implications for economic development.

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Definitions:

Leftover Income

The amount of income that remains after all necessary expenses, such as bills and living costs, have been paid.

Budget Constraint

A limit on the consumption bundles that a consumer can afford given their income and the prices of goods.

Equation

A mathematical statement that asserts the equality of two expressions, usually denoted by the symbol '='.

Monthly Income

The total amount of income or earnings generated by an individual, household, or entity within a month, including all sources.