In the Simple Aggregate Expenditure Model Where All Components of Aggregate

question 109

Multiple Choice

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, what is the value of the multiplier if the marginal propensity to save is 0.1?

• A) 1
• B) 4
• C) 5
• D) 10

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Definitions:

Organizing Function

The process of arranging resources and tasks to achieve objectives, typically within a business or organizational setting.

Raw Materials

Raw materials are the basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for subsequent modification or transformation into finished goods.

Contingency Approach

A theory that suggests the best way to manage an organization or make decisions depends on specific circumstances or external factors, rather than a one-size-fits-all method.

Organizational Design

The process of structuring a company's roles, responsibilities, and systems to effectively and efficiently achieve its goals and adhere to its values.