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:

Total Person

A holistic concept encompassing all aspects of an individual’s being, including physical, mental, emotional, and spiritual dimensions.

Organizations

Groups or assemblies of individuals structured to achieve particular aims or goals through collective efforts and established processes.

Person Development

The process of self-improvement through activities that enhance one’s skills, knowledge, and personal qualities, often contributing to the achievement of personal and professional goals.

Broad Themes

General, wide-ranging subjects or ideas that are common across or central to various discussions, studies, or areas of inquiry.