When the Marginal Propensity to Save Declines,the

question 58

Multiple Choice

When the marginal propensity to save declines,the

• A)multiplier becomes larger and the IS curve becomes flatter.
• B)marginal propensity to consume increases and there is no effect on the IS curve.
• C)multiplier becomes larger and the IS curve becomes steeper.
• D)multiplier declines and the IS curve becomes steeper.

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Definitions:

Factor Labor

This refers to the human effort, both physical and mental, used in the production of goods and services.

Market Wage

The prevailing rate of pay for given types of work or specific occupations in a particular geographic or sectoral labor market.

Brewmasters

Brewmasters are professionals skilled in the brewing of beer, overseeing the production process from ingredient selection to fermentation and final product tasting.

Perfectly Competitive

A market scenario where products are identical, there are numerous buyers and sellers, and no single entity can influence the market price.