If the Multiplier Is 4 and There Are No Imports

question 86

Multiple Choice

If the multiplier is 4 and there are no imports or income taxes, the marginal propensity to consume is

• A)1.00.
• B)0.75.
• C)0.50.
• D)0.25.

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Definitions:

Body Digests Food

The physiological process by which the human body breaks down food into smaller components to absorb nutrients and energy.

Information-Processing Theory

Emphasizes that individuals manipulate information, monitor it, and strategize about it. Central to this theory are the processes of memory and thinking.

Theorist

An individual who formulates theories or is skilled in developing theoretical models in a particular field of study.

Siegler

A reference to Robert Siegler, a prominent figure in the field of developmental psychology known for his work on children's cognitive development and problem-solving strategies.