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:

Vas Deferens

The duct that conveys sperm from the testicle to the urethra in male mammals.

Semen

A fluid containing spermatozoa and secretions from male reproductive organs, which is capable of fertilizing female ova.

Folate

A B-vitamin that is crucial for DNA synthesis and repair, and important in early pregnancy to prevent neural tube defects.

Neural Tube Defects

Congenital deformities of the brain and spinal cord caused by incomplete closing of the neural tube during embryonic development.