Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 186

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. In this model, the multiplier is _____.

• A) 1 ÷ (1 - MPS) where MPS = marginal propensity to save
• B) 1 ÷ MPC where MPC = marginal propensity to consume
• C) 1 ÷ MPS where MPS = marginal propensity to save
• D) MPC ÷ MPS ÷ ∆Y

---

Definitions:

Permission

Authorization granted to a user or application to access specific resources or perform certain actions.

Specialty Search Engine

A search engine focused on a specific topic, subject, or type of content, providing more targeted results.

General Search Engines

Web-based tools designed to search the internet for information based on keywords or phrases inputted by the user.

Worthwhile Resource

Denotes a valuable or useful asset, often in terms of information, materials, or tools.