A Decrease in the Value of the Simple Multiplier Can

question 9

Multiple Choice

A decrease in the value of the simple multiplier can be caused by

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

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Definitions:

Numerical Variables

Variables that represent quantifiable data, allowing for mathematical operations to be performed on them.

Poisson Distribution

A probability distribution that expresses the likelihood of a given number of events occurring in a fixed interval of time or space.

Normal Distribution

A type of continuous probability distribution for a real-valued random variable, characterized by a symmetric bell-shaped curve.

Binomial Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given set of parameters.