An Increase in the Marginal Propensity to Consume Leads to an Increase

question 168

True/False

An increase in the marginal propensity to consume leads to an increase in the Keynesian multiplier.

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Definitions:

Core Peripheral Country

A concept in world-systems theory describing countries that dominate in terms of advanced technology, financial resources, and economic influence, as opposed to peripheral countries that are dependent and exploited.

Geopolitically Important

Having significant influence or strategic value in global politics and international relations.

Financial Assistance

Support given in the form of money to individuals or organizations in need, often provided by governments, institutions, or private entities.

Dependency Theory

A social science theory proposing that economic development in a global context is structured by the exploitation and dependency relationships between wealthy, developed countries and poorer, underdeveloped nations.