If the Marginal Propensity to Save (MPS) Is 0

question 80

Multiple Choice

If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:

• A) 1.
• B) 2.
• C) 4.
• D) 9.

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Definitions:

Memory

The cognitive process of storing, retaining, and recalling information from past experiences.

Reminiscence

The act of recalling past experiences or events, often with a sense of nostalgia.

Autobiographical Sharing

The act of recounting personal life events and experiences to others, which plays a significant role in social bonding and mental health.

Cultural Values

The core principles and standards shared by a group that influence behaviors and beliefs within that society.