If the Marginal Propensity to Save (MPS) Is 0

question 55

Multiple Choice

If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:

• A) 1.
• B) 9.
• C) 10.
• D) 90.

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Definitions:

C Corporations

A type of corporation in the United States subject to corporate income tax, distinguished by being taxed separately from its owners.

C Corporations

A legal structure for a corporation in which the owners are taxed separately from the entity, providing limited liability protection but facing double taxation.