Suppose the Marginal Propensity to Consume Is 0

question 37

Multiple Choice

Suppose the marginal propensity to consume is 0.5, the marginal propensity to tax is 0.3 and the marginal propensity to import is 0.25 in an open economy with government sector. What is the approximate size of the multiplier?

• A) 0.95
• B) 1
• C) 0.89
• D) 0.7

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Definitions:

Strong Cultures

Characterizes organizations with deeply ingrained values, beliefs, and practices that are widely shared and strongly upheld by members, influencing behavior and decision-making.

Rituals

Established sequences of activities or behaviors that are conducted in specific circumstances, often bearing symbolic meaning.

Cultural Message

An idea or set of values conveyed through cultural symbols, practices, or artifacts, reflecting the beliefs of a particular community.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate and blood flow, among other responses.