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:

Glomeruli

Small, spherical structures in the kidneys that are responsible for filtering blood and starting the process of urine formation.

Pyriform Cortex

A region of the brain involved in the processing of olfactory (smell) information.

Chemosignals

Chemical signals that convey information between organisms; they play key roles in many biological processes and behaviors.

Biochemicals

Molecules that constitute the chemical substances and processes occurring within living organisms.