Consider a Simple Macro Model with Demand-Determined Output

question 138

Multiple Choice

Consider a simple macro model with demand-determined output.If z is the marginal propensity to spend out of national income,Y is national income and A is autonomous expenditure,then the simple multiplier is equal to

• A)z.
• B)1 - z.
• C)1/z.
• D)1/(1 - z).
• E)Y/(1 - z).

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Definitions:

Power Distance

A cultural dimension describing the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.

Future Orientation

This refers to the degree to which individuals or cultures prioritize and plan for future events, often impacting long-term decision making and goal setting.

In-Group Collectivism

The tendency of individuals in a group, organization, or society to prioritize and emphasize the goals, needs, and views of the in-group over those of outsiders.

Assertiveness

The quality of being self-assured and confidently expressing one's rights and needs without infringing on the rights of others.