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Explain What Effect an Increase in the Marginal Propensity to Save

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Essay

Explain what effect an increase in the marginal propensity to save will have on the slope of the demand line and on the size of the multiplier.


Definitions:

Divisionalized Form

This organizational structure divides an entity into semi-autonomous units or divisions, each responsible for their own operations, products, or services.

Machine Bureaucracy

A type of organizational structure characterized by a high degree of standardization and formalization, clear hierarchical levels of authority, and a focus on rules and regulations for management and control.

Span of Control

The number of subordinates directly supervised by a manager, indicating the breadth of management's control.

Hierarchy of Authority

A structured order of positions within an organization, where each level has specific powers and responsibilities over the levels below.

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