If the MPS = 0

question 29

Multiple Choice

If the MPS = 0.25 and the MPM = 0.25, the spending multiplier with net exports equals

• A)5
• B)4
• C)3
• D)2
• E)1

---

Definitions:

Virtue Ethics

A philosophical approach that emphasizes virtues, or moral character, in ethical decision-making rather than rules or consequences.

Ethics Of Care

A moral theory emphasizing the importance of interpersonal relationships and compassion as fundamental to ethical decision-making.

Code Of Ethics

A written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.

Firm

A business entity, often used to denote a partnership or a corporation engaged in professional services.