If the Marginal Propensity to Consume (MPC) Is 1, the Simple

question 44

Multiple Choice

If the marginal propensity to consume (MPC) is 1, the simple multiplier is _____

• A) 0.
• B) 1.
• C) 10.
• D) 100.
• E) infinity.

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Definitions:

Labor Force

The total number of people who are actively employed or seeking employment within an economy.

Sweden

A Scandinavian country in Northern Europe, known for its rich history, advanced social welfare system, and natural beauty.

Money Management

The practice of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

Dual-income Families

Households in which both partners earn an income, typically through employment outside the home.