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:

Need For Achievement

A psychological drive that motivates individuals to accomplish tasks, achieve goals, and set challenging objectives for themselves.

Learned Needs Theory

A theory suggesting that individuals' needs are acquired over time based on their life experiences, affecting motivation and behavior in organizations.

Personalized Power

This refers to power used for personal gain, often without regard for others, focusing on self-centered objectives.

Expectancy Theory

A theory in motivational psychology that describes the motivational force as a function of an individual's belief in the likelihood of achieving desired performance levels and the perceived rewards associated with those levels.