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:

Lactate

A compound produced during the breakdown of glucose in the absence of oxygen, often associated with muscle fatigue.

ATP Concentration

The quantity of adenosine triphosphate present within a cell, a critical factor in cellular energy storage and supply for various metabolic functions.

Active Cells

Cells that are engaged in metabolic processes, often characterized by growth, repair, or replication.

Hemoglobin Synthesis

The production of hemoglobin, a protein in red blood cells that carries oxygen throughout the body.