Suppose the Marginal Propensity to Consume in Spain Is 3/5

question 12

Multiple Choice

Suppose the marginal propensity to consume in Spain is 3/5, and the marginal propensity to save in Portugal is 1/10.Which of the following characterizes how the economy of each nation will be affected?  

• A) The spending multiplier will be larger in Spain than in Portugal. 
• B) The spending multiplier will be smaller in Spain nation than in Portugal. 
• C) Autonomous consumption will be higher in Spain than in Portugal. 
• D) Autonomous consumption will be lower in Spain than in Portugal.

Understand the different types of adjusting entries and their importance in financial reporting.

Understand the concept of ethical dilemmas and how they involve choosing between conflicting ethical alternatives.

Recognize the characteristics of social communication including its bidirectionality and high message frequency.

Learn effective communication strategies with multilingual or diverse audiences.

---

Definitions:

Second-Hand Machine

Pertains to machinery that has been previously owned and used, often sold at a lower price compared to new equipment.

Productive Use

Refers to the use of assets or resources in a manner that generates income or value.

Renovation Costs

Expenses associated with updating, repairing, or improving a property, often to increase its value or functionality.

Acquisition Cost

The net cash equivalent amount paid or to be paid for an asset