If the Marginal Propensity to Save (MPS) Is 0

question 59

Multiple Choice

If the marginal propensity to save (MPS) is 0.25, the simple multiplier is _____

• A) 25.
• B) 75.
• C) 5.
• D) ¾.
• E) 4.

---

Definitions:

Concrete Workers

Individuals specialized in working with concrete, mixing, forming, and finishing surfaces and structures.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, received by an employee from an employer in exchange for work done.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, leading to a balance without surplus or shortage.