If the Marginal Propensity to Consume Is 4/5,what Is the Multiplier

question 107

Multiple Choice

If the marginal propensity to consume is 4/5,what is the multiplier?

• A)1/5
• B)1
• C)5
• D)20

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Definitions:

Petite Bourgeoisie

Refers to the lower middle class, historically defined as small business owners and workers who aspire to be part of the bourgeoisie, or middle class.

Bourgeoisie

The class of modern capitalists who own the means of production and employ wage labor, as distinguished from the proletariat in Marxist theory.

Proletariat

The class of wage earners, especially those who earn their living by manual labor or who are dependent for support on daily or casual employment; the working class.

IGE Score

An indicator used in economics to measure intergenerational mobility, reflecting the extent to which a parent’s income can predict their child’s income in adulthood.