In the Simple Aggregate Expenditure Model Where All Components of Aggregate

question 109

Multiple Choice

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, what is the value of the multiplier if the marginal propensity to save is 0.1?

• A) 1
• B) 4
• C) 5
• D) 10

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Definitions:

Scientific Method

A systematic approach to investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge.

Cohort

A group of people who share a common characteristic or experience within a defined period, often used in research studies.

Research Question

A specific query that guides a study, aiming to generate new insights or understanding.

Participant Reactivity

The phenomenon in research where the behavior of study participants is altered simply because they are aware that they are being observed.