An Increase in the Value of the Simple Multiplier Can

question 104

Multiple Choice

An increase in the value of the simple multiplier can be caused by

• A)a decrease in the marginal propensity to consume.
• B)an increase in the marginal propensity to import.
• C)an increase in the net tax rate.
• D)an increase in the marginal propensity to save.
• E)a decrease in the net tax rate.

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Definitions:

Lava Fountain

A spectacular volcanic phenomenon in which molten lava is violently ejected into the air from a vent or crack, forming a fountain-like appearance.

Lava Flow

The movement of molten rock expelled by a volcano onto the Earth's surface.

Low-viscosity Lavas

Lava flows that are thin, runny, and able to travel long distances due to their low resistance to flow.

Volatile-rich Eruptions

Volatile-rich eruptions refer to volcanic eruptions that expel a high amount of volatile compounds, such as water vapor and gases, leading to explosive phenomena.