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:

Ampulla

An enlargement of a duct or canal that can store or slow the flow of fluids, found in various anatomical locations.

Oviducts

Tubes through which an ovum or egg passes from an ovary. Also known as Fallopian tubes in humans, they are involved in the transport of eggs and are the site of fertilization.

Fallopian Tubes

Tubes that extend from the lateral end of each ovary to the uterus, providing the path for the egg to travel during ovulation.

Areolar Glands

Glands located in the areola of the breast, which secrete a lubricating fluid to protect the nipple during breastfeeding.