Consider a Simple Macro Model with a Constant Price Level

question 111

Multiple Choice

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

• A)zero.
• B)a positive number between zero and one.
• C)one.
• D)a positive number greater than one but less than infinity.
• E)infinitely large.

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Definitions:

Uninvolved

A parenting style characterized by a lack of responsiveness to a child's needs and a general disengagement from their life.

Parents

The guardians responsible for raising and nurturing a child, which can include biological, adoptive, step, or foster parents.

Homogenous

Characterized by similarity or uniformity in structure, composition, or nature.

Cultural Context

Refers to the environment and social factors that influence the values, practices, and behaviors of individuals and communities.