Which of the Following Is True of the Simple Spending

question 81

Multiple Choice

Which of the following is true of the simple spending multiplier

• A)It equals the ratio of the marginal propensity to consume to the marginal propensity to save.
• B) It equals the difference between the marginal propensity to save and the marginal propensity to consume.
• C)It is the reciprocal of the marginal propensity to save.
• D)It is the reciprocal of the marginal propensity to consume.
• E)It is the sum of the marginal propensity to consume and the marginal propensity to save.

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Definitions:

Nutrients

Essential chemicals needed by organisms to grow and function properly, often required in small amounts and obtained from the environment or diet.

Gradual Change

A process or development that occurs slowly over time.

Climate Change

A long-term alteration in temperature and typical weather patterns in a place, largely attributed to human activities such as fossil fuel combustion.

Drought

A prolonged period of abnormally low rainfall, leading to a shortage of water.