If the Marginal Propensity to Save (MPS) Is 0

question 55

Multiple Choice

If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:

• A) 1.
• B) 9.
• C) 10.
• D) 90.

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Definitions:

Statistic

A numerical measurement describing some characteristic of a sample, used to infer properties of the population from which it was drawn.

Parameter

A quantity that defines certain characteristics of a system or function, often used in mathematical or statistical models.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Discrete Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes for a discrete random variable.