Other Things Being Constant, If the Marginal Propensity to Save

question 72

Multiple Choice

Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)

• A)decreases by $10 million.
• B)increases by $90 million.
• C)decreases by $1 billion.
• D)increases by $1 billion.

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Definitions:

Hardware

The physical components and devices that make up a computer or computer system.

Software

Programs and operating information used by a computer to perform specific tasks or functions.

Examination Room

A room within a healthcare facility where patients are examined by medical professionals, typically equipped with medical supplies and diagnostic instruments.

Restocked

The process of replenishing inventory or supplies to their optimal or required levels.