If the Marginal Propensity to Save (MPS) Is 0

question 103

Multiple Choice

If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:

• A) 1.
• B) 2.
• C) 4.
• D) 9.

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Definitions:

Pebble-sized Particles

Small, rounded stones or pieces of rock, typically sized between 4 and 64 millimeters in diameter.

Oldest Unit

The earliest formed part of a geological sequence, which can provide valuable information about the Earth's history.

Easy to Erode

Refers to geological materials or landforms that are readily worn away or removed by the action of water, wind, ice, or other erosional forces.

Loose Materials

Unconsolidated and uncompacted substances or objects, often used to describe soil, sand, or aggregate that is easily moved or reshaped.