If the Marginal Propensity to Save Is 0

question 147

Multiple Choice

If the marginal propensity to save is 0.2, the value of the spending multiplier will be

• A) 0.8.
• B) 1.25.
• C) 5.
• D) 8.

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Definitions:

Natural Predators

Organisms that hunt and consume other organisms for food, playing crucial roles in maintaining the balance of ecosystems.

Bartolome de las Casas

A 16th-century Spanish friar and historian, known for his advocacy for the rights of indigenous peoples in the Americas and critical accounts of the Spanish conquest.

Conquistadors

Spanish explorers and soldiers who led military expeditions in the Americas and Asia during the 16th century, often subjugating native populations.

Ecomiendas

A labor system instituted by the Spanish in the Americas, granting colonists the right to the labor of Indigenous peoples in exchange for their conversion to Christianity.