Consider a Simple Macro Model with a Constant Price Level

question 146

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend is 0.9,the simple multiplier is

• A)0.1.
• B)0.9.
• C)1.0.
• D)1.1.
• E)10.0.

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Definitions:

Distorted

Twisted or misrepresented from the original form, often resulting in a misleading perception or concept.

Dopamine Receptors

Proteins located in the brain that interact with the neurotransmitter dopamine, playing crucial roles in regulating mood, motivation, and reward.

Too Low

A term that could refer to something being insufficient in quantity, degree, strength, or below a necessary or desired level.

Overly Sensitive

Exhibiting an exaggerated emotional response to perceived criticisms or situations, often characterized by heightened vulnerability.