If the Marginal Propensity to Save (MPS)is 1/8,the Value of the Simple

question 119

Multiple Choice

If the marginal propensity to save (MPS) is 1/8,the value of the simple spending multiplier is:

• A)8.
• B)1/8.
• C)2.
• D)1/2.
• E)4.

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Definitions:

Permanent Restriction

A binding condition or stipulation that indefinitely limits the use of an asset or the execution of an action.

Philanthropic Gift

A donation made by an individual or an organization to a nonprofit entity, typically for charitable purposes or to support a cause.

Government Grant

financial awards given by governmental bodies to organizations, institutions, or individuals for specific purposes, usually without the expectation of repayment.

Quasi-Endowment Funds

Funds set aside by an organization, often a nonprofit or educational institution, to function like an endowment but which can be accessed under certain conditions, as determined by its governing body.