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:

Financing Statement

A document filed to give public notice that a lender has a security interest in a debtor's personal property, used in secured transactions.

Termination Statement

An amendment to a financing statement, which states that the debtor has no obligation to the secured party.

Secured Party

A creditor or lender that has an interest, typically in the form of a lien, in the collateral offered by the debtor to secure a loan or obligation.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults.