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:

Reproductive Capacity

denotes the ability or potential of an organism to produce offspring through sexual or asexual means.

Menopause

A natural biological process marking the end of a woman’s menstrual cycles, usually diagnosed after going 12 months without a menstrual period.

Menarche

The occurrence of the first menstrual period in a female, a milestone in pubertal development usually happening between the ages of 10 and 15.

Climacteric

A phase in adult life, typically occurring between the ages of 45 and 55, marked by reduced reproductive capacity and, in women, menopause.