If That the Marginal Propensity to Save (MPS)increased from 0

question 32

Multiple Choice

If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to

• A)decrease.
• B)increase.
• C)stay the same.
• D)None of the above is correct.

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Definitions:

Gestation

The period of development between fertilization and birth in viviparous organisms, often referring to human pregnancy.

Fetus

The developmental stage of a human being in the womb from the ninth week after fertilization until birth.

Survival

The process of continuing to live or exist, often despite hardship or danger.

Malnourished

The condition of having inadequate nutrition, either because of insufficient intake of calories or essential nutrients, or improper absorption.