In a Simple Macro Model with Demand- Determined Output, the Simple

question 40

Multiple Choice

In a simple macro model with demand- determined output, the simple multiplier is equal to 1/(1- z) , where z equals the

• A)average propensity not to spend.
• B)level of autonomous expenditure.
• C)marginal propensity not to spend.
• D)average propensity to spend.
• E)marginal propensity to spend.

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Definitions:

Secondary Cell

A voltaic cell that can be recharged.

Cathode

An electrode through which electrons move outward from the source in an electrical device; in a battery, it's the negative electrode.

Voltaic

Pertaining to electricity or electrical phenomena, especially those produced chemically, e.g., in voltaic cells where chemical energy is converted into electrical energy.

Anode

An electrode through which conventional current flows into a polarized electrical device; in electrolysis, it is the positively charged electrode.