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:

Assignable

The capability of a contract or other legal document to be transferred from one party to another.

Membership

The state or condition of being a member or part of an organization or group.

Public Policy

Principles and standards regarded by the legislative or judicial branches of government as being of fundamental concern to the state and its citizens.

Invalid Assignment

The transfer of rights or benefits under a contract that is not permitted or recognized by law, rendering it void.