If Households Save $0

question 11

Multiple Choice

If households save $0.20 of each additional dollar of increased income and spend the rest,the expenditure multiplier will be

• A) 1.25.
• B) 2.
• C) 5.
• D) 8.

---

Definitions:

Research Question

A question that outlines the problem or issue to be explored through research, guiding the methodology and aims of the study.

Formulating a Hypothesis

The process of creating an educated guess or a proposed explanation for a phenomenon, which can be tested through research.

Gathering Information

The process of collecting data or facts from various sources to increase knowledge or make informed decisions.

Hypothesis

A proposed explanation for a phenomenon that can be tested.