Which of the Following Is True of the Simple Spending

question 81

Multiple Choice

Which of the following is true of the simple spending multiplier

• A)It equals the ratio of the marginal propensity to consume to the marginal propensity to save.
• B) It equals the difference between the marginal propensity to save and the marginal propensity to consume.
• C)It is the reciprocal of the marginal propensity to save.
• D)It is the reciprocal of the marginal propensity to consume.
• E)It is the sum of the marginal propensity to consume and the marginal propensity to save.

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Definitions:

Productivity

The measure of how efficiently resources are used to produce outputs.

Inputs

Resources used in the production process to generate outputs, including raw materials, labor, and capital.

Transformed Into Outputs

The process of converting inputs such as raw materials, labor, and energy into finished goods or services.

Quantitative Measure

Numerical indicators used to evaluate, compare, or track performance or production.