Consider a Simple Macro Model with Demand- Determined Output

question 70

Multiple Choice

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

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

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Definitions:

British Navy

The naval warfare force of the United Kingdom, historically one of the world's most powerful maritime forces.

Atlantic Ocean

The second-largest body of water in the world, separating the continents of Europe and Africa on the east from the Americas on the west.

Theodore Roosevelt

The 26th President of the United States (1901-1909) known for his exuberant personality, range of interests and achievements, as well as his leadership of the Progressive Movement and conservation efforts.

American Neutrality

Refers to the policy of the United States to avoid taking sides or becoming involved in foreign conflicts or wars, particularly noted during the early parts of World Wars.