The Marginal Propensity to Save (MPS) in a Closed Economy

question 15

Multiple Choice

The marginal propensity to save (MPS) in a closed economy is 0.1. By how much will national output increase if autonomous expenditure increases by £200?

• A) 20
• B) 2000
• C) 200
• D) 1000

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Definitions:

Peripheral Vision

The ability to see objects and movement outside of the direct line of vision, towards the edges of the visual field.

Differentiation

The process by which cells or aspects of an organism change during development to serve specific functions.

Canalization

A concept in developmental biology referring to the ability of an organism to produce the same phenotype regardless of variability of its environment or genotype.

Visual Cliff

An experimental apparatus used to study infants' and young animals' perception of depth and their ability to understand visual cues related to depth.