If the Marginal Propensity to Save (MPS) in a Closed

question 66

Multiple Choice

If the marginal propensity to save (MPS) in a closed economy is 0.02 and the marginal propensity to tax (MPT) is 0.06, what is the value of the multiplier?

• A) 6
• B) 10.5
• C) 8.5
• D) 12.5

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Definitions:

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology and introduced concepts like archetypes and the collective unconscious.

Archetypes

Universal, symbolic images that appear across cultures and literature, representing fundamental human motifs or patterns.

Self-efficacy

The belief in one's abilities to organize and execute the courses of action required to manage prospective situations.

Reciprocal Determinism

Bandura’s explanation of how the factors of environment, personal characteristics, and behavior can interact to determine future behavior.