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:

Restrain

The act of holding someone back or restricting their movement, often for safety or control reasons.

Apical Pulse

The heart rate as measured at the apex of the heart, usually detected through a stethoscope placed on the chest's left side under the breast.

Respiratory Rate

The number of breaths taken per minute, an important vital sign in assessing respiratory and overall health.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.