If the Marginal Propensity to Consume (MPC)is 4/5,the Value of the Simple

question 11

Multiple Choice

If the marginal propensity to consume (MPC) is 4/5,the value of the simple multiplier is:

• A)4.
• B)1/5.
• C)4/5.
• D)5/4.
• E)5.

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Definitions:

McClelland's Acquired Needs Theory

A motivational theory suggesting that individuals are driven by three primary needs: achievement, affiliation, and power, which are acquired over time.

Maslow's Love/Belongingness

A concept from Maslow's hierarchy of needs that emphasizes the human need for interpersonal relationships, feeling loved, and belonging to a group.

ERG Theory

A theory on human motivation that categorizes needs into three groups: Existence, Relatedness, and Growth.

Existence Needs

Refers to the basic physiological and safety needs of individuals, such as food, water, shelter, and security.