Other Things Being Constant, If the Marginal Propensity to Save

question 72

Multiple Choice

Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)

• A)decreases by $10 million.
• B)increases by $90 million.
• C)decreases by $1 billion.
• D)increases by $1 billion.

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Definitions:

Ecological Theory

A framework for understanding the complex interrelations between organisms and their environment, emphasizing reciprocal influences.

Environmental Factors

Aspects of the environment that can influence living organisms, including natural elements like climate and man-made changes, which can impact health, behaviors, and development.

Ethologist

A scientist who studies animal behavior in natural environments, focusing on instinctual or innate behaviors.

Well-Controlled Research Lab

A research setting where experiments are conducted with strict adherence to protocols to minimize variables and bias, ensuring reliable and valid results.