If the Marginal Propensity to Save Is 0

question 43

Multiple Choice

If the marginal propensity to save is 0.25, the multiplier is

• A) 1.33.
• B) 3.
• C) 3.33.
• D) 4.

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Definitions:

Purchase Offer

An offer made by a potential buyer detailing the price and terms under which they would buy a property or item.

Compounded Quarterly

A method of calculating interest where the interest amount is added to the principal every three months, increasing the amount on which subsequent interest is calculated.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Scheduled Debt

A fixed plan for the repayment of borrowed money, including principal and interest, over a specified period.