If the Marginal Propensity to Consume (MPC)in Your Classmate's Nation

question 95

Multiple Choice

If the marginal propensity to consume (MPC) in your classmate's nation is 3/5 and the marginal propensity to save (MPS) in your country is 1/10,which of the following must be true?

• A)The spending multiplier is larger in your classmate's nation than in your country.
• B)The spending multiplier is smaller in your classmate's nation than in your country.
• C)Autonomous consumption is higher in your classmate's nation than in your country.
• D)Autonomous consumption is lower in your classmate's nation than in your country.
• E)Total consumption is lower in your classmate's nation than in your country.

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Definitions:

Nasal Cavity

The large air-filled space behind the nose, involved in breathing and smelling, lined with mucous membranes to filter, warm, and humidify air.

Glottis

The opening between the vocal cords in the larynx, playing a key role in producing vocal sounds and regulating airflow during breathing.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.

Deficiency

A lack or shortage of a necessary nutrient, vitamin, or mineral in the body, leading to various health problems.