The Smaller the Mpc, the ________ the Income-Expenditure Multiplier and the ________

question 100

Multiple Choice

The smaller the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.

• A)larger; larger
• B)larger; smaller
• C)smaller; smaller
• D)smaller; larger

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Definitions:

Social Stratification

A system by which society ranks categories of people in a hierarchy based on factors like wealth, income, race, education, and power.

Hierarchical Ranking

A system where entities are arranged in a graded order from lowest to highest based on certain criteria.

Subjective Assessments

Evaluations based on personal feelings, tastes, or opinions rather than on external facts or evidence.

Dominant Ideology

The set of beliefs, values, and norms that are most widely shared within a society, often reinforcing the current social power structure.