The Use of 1/MPS Formula as the Size of the Multiplier

question 142

Multiple Choice

The use of 1/MPS formula as the size of the multiplier in the economy, overstates the actual size of it because:

• A)saving is not the only fraction of the domestic income which is not spent.
• B)saving is the only fraction of the domestic income which is not spent.
• C)imports and taxes create new income in the economy.
• D)imports and not taxes creates new income in the economy.

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Definitions:

Approved Diagnoses

Medical or psychological conditions recognized and sanctioned by authoritative bodies for treatment and insurance coverage.

Axis I

A classification system used in diagnosing mental health disorders, focusing on clinical syndromes that cause significant impairment.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.