If the Marginal Propensity to Save Is 0

question 17

Multiple Choice

If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.2, then value of the simple spending multiplier is:

• A)2.0.
• B)0.5.
• C)1.5.
• D)0.1.

---

Definitions:

State Convention

A gathering or assembly at the state level, often for political, social, or educational purposes, which can involve decision-making or election processes.

Primary Election

A preliminary election to appoint delegates to a party conference or to select the candidates for a principal, especially presidential, election.

Political Party

An organized group of people with at least roughly similar political aims and opinions, seeking to influence public policy by getting its candidates elected to public office.

Candidates

Individuals seeking to be elected or appointed to a public office or position.