Consider a Simple Macro Model with Demand- Determined Output

question 19

Multiple Choice

Consider a simple macro model with demand- determined output. In such a model, the larger the marginal propensity to spend, the

• A)greater is investment.
• B)larger the MPC.
• C)larger the simple multiplier.
• D)smaller the MPS.
• E)smaller the simple multiplier.

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Definitions:

Absolute

Unconditional and complete, often referring to rights or decisions that are not subject to limitations or exceptions.

License

A permit from an authority to own or use something, do a particular thing, or carry out a trade.

Personal Privilege

A special right, advantage, or immunity granted to an individual based on status or relationship.

Tenancy in Common

A form of co-ownership where each party owns a separate fraction of the property and can transfer their interest independently.