Mathematically, the Value of the Spending Multiplier in Terms of the Marginal

question 140

Multiple Choice

Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:

• A) MPC − 1.
• B) (MPC − 1)/MPC.
• C) 1/MPC.
• D) 1/(1 − MPC).

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Definitions:

Demonstrative Legacy

A gift of a particular amount of money or a specific asset to a specific beneficiary, distinguished from the rest of an estate, made in a will.

Probate

A legal process that involves the verification of a deceased person's will and the administration of the deceased's estate.

Resided

Refers to living or being situated in a particular place.

Demonstrative Legacy

A specific bequest in a will that designates a particular source of funding.