If Households Spend $0

question 53

Multiple Choice

If households spend $0.95 of each additional dollar of increased income,the expenditure multiplier will be

• A) 1.05.
• B) 5.
• C) 20.
• D) 9.5.

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Definitions:

Multifactor Productivity

An efficiency measure that evaluates the output produced relative to a combination of input factors like labor, materials, and capital.

Inputs

Resources used in the production process, including raw materials, labor, and capital.

Outputs

The final products, services, or results generated by a system, process, or project.

Foundry

A workshop or factory for casting metal, where molten metal is poured into molds to create various shapes.