An Increase in the Marginal Propensity to Save from

question 52

Multiple Choice

An increase in the marginal propensity to save from .1 to .2 will cause

• A)an increase in the multiplier and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• B)an increase in the multiplier and a given change in autonomous consumption (c₀)to have a larger effect on output.
• C)a reduction in the multiplier and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• D)a reduction in the multiplier and a given change in autonomous consumption (c₀)to have a larger effect on output.

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Definitions:

Troops

Units of soldiers, typically used to refer collectively to military personnel.

Somalia

A country located in the Horn of Africa, known for its long coastline, history of clan-based society, and recent struggles with instability and piracy.

Long-lasting Conflict

A prolonged struggle or dispute that persists over an extended period of time, often involving armed combat.

Clinton

Referring to Bill Clinton, the 42nd President of the United States, who served from 1993 to 2001, or Hillary Clinton, a prominent American politician and former Secretary of State.