An Estimate of the MPC in the U

question 151

Multiple Choice

An estimate of the MPC in the U.S. is 0.90.
Paul Krugman, the 2008 Nobel Prize winner in economics, stated, ʺ... youʹd be hard pressed to argue for an overall multiplier as high as 2.ʺ
What factors could explain the difference between the MPC and Krugmanʹs estimate of the multiplier?

• A) exports and investment.
• B) imports and taxes.
• C) investment and imports.
• D) taxes and investment.

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as viruses and bacteria.

Disenfranchised Emotion

Feelings that are marginalized or not socially accepted, causing them to be suppressed or unexpressed.

Adolescents

Young people transitioning from childhood to adulthood, typically within the age range of 13 to 19 years, characterized by significant physical, emotional, and psychological development.

Own Mortality

The awareness or recognition of one's eventual death, often leading to existential questioning or changes in perspective and behavior.