If the Marginal Propensity to Save (MPS)is 0

question 117

Multiple Choice

If the marginal propensity to save (MPS) is 0.5 and net exports falls by $100 million, then

• A)real Gross Domestic Product (GDP)will increase by $100 million.
• B)real Gross Domestic Product (GDP)will fall by $200 million.
• C)real Gross Domestic Product (GDP)will not change.
• D)the effect on real Gross Domestic Product (GDP)cannot be determined from the given information.

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Definitions:

Promote Justice

The act of advocating for fair treatment and equal rights within legal, societal, or institutional contexts.

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners and entitling them to potential dividends and certain rights within the corporation.

Looting

The act of stealing goods, typically during a war or riot.

Shareholder-Managers

Individuals who both own shares in a company and actively manage its operations or participate in strategic decision-making.