Consider a Simple Macro Model with a Constant Price Level

question 110

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is 0.8,the simple multiplier is

• A)0.
• B)0.8.
• C)1.25.
• D)5.0.
• E)8.0.

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Definitions:

Flatus

Gas generated in the stomach or intestines that can be expelled through the rectum.

Ileum

The third and final part of the small intestine, which plays a critical role in absorbing nutrients and water.

Stoma

A surgically created opening on the surface of the body that connects an internal organ to the external environment.

Colostomy

A surgical procedure that creates an opening (stoma) from the colon to the abdominal surface to allow for the diversion of fecal matter.