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:

Contribution Format

An income statement format that separates fixed and variable costs, highlighting the contribution margin.

Income Statement

An accounting document reflecting a business's earnings, outlays, and gains for a particular period.

Tile Manufacturer

A company specializing in the production of tiles, which are pieces of hard-wearing material such as ceramic, stone, or metal used for covering roofs, floors, walls, or other objects.

Selling Price

The amount charged to customers for goods or services, determining the revenue generated from sales.