Consider a Simple Macro Model with a Constant Price Level

question 25

Multiple Choice

Consider a simple macro model with a constant price level and demand- determined output. If the marginal propensity to spend is 0.9, the simple multiplier is

• A)0.1.
• B)1.0.
• C)0.9.
• D)1.1.
• E)10.0.

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Definitions:

Misinformation Effect

The tendency of misleading information presented after an event to alter the memories of the event itself.

Loftus

Refers to Elizabeth Loftus, a cognitive psychologist best known for her work on the malleability of human memory and the misinformation effect.

Slide Presentation

A collection of slides created using software like PowerPoint, designed to convey information visually during a presentation.

Altered Memories

The phenomenon where recall of certain memories can be distorted or changed over time, sometimes by misinformation or imagination.