Suppose That the Marginal Propensity to Save (MPS) Equals 0

question 279

Multiple Choice

Suppose that the marginal propensity to save (MPS) equals 0.2. The value of the multiplier would be

• A) )8.
• B) 1.25.
• C) 2.
• D) 5.

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Definitions:

Utility

In economics, utility refers to the satisfaction or benefit derived by consumers from consuming goods or services.

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Participative Leadership

A leadership style where decision-making is shared among the group, incorporating employee input in organizational decisions.

Union Suppression

Actions or strategies undertaken by employers or others to prevent the formation of unions or to diminish their influence and power within the workplace.