The Higher the Marginal Propensity to Consume,the

question 2

Multiple Choice

The higher the marginal propensity to consume,the

• A)smaller will be the simple multiplier.
• B)more insulated will be consumption spending from exogenous shocks to the economy.
• C)less effective will be any given monetary or fiscal policy.
• D)more unstable the economy will be.

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Definitions:

Win-lose Competition

A competitive scenario where one party's gain is directly correlated with the other's loss, emphasizing the zero-sum nature of some competitions.

Collaboration

The action of working with someone to produce or create something, especially in a learning or professional context.

Cooperative

An entity or organization owned and operated for the mutual benefit of its members, sharing profits or benefits among participants.

Assertiveness

A communication style in which individuals express their thoughts and feelings in a direct, honest, and respectful way.