The Nation of Omega Has an MPC of 0

question 16

Multiple Choice

The nation of Omega has an MPC of 0.70 and an MPM of 0.15. Therefore, Omega's spending multiplier is

• A)1.18
• B)2.22
• C)3.33
• D)1.43
• E)This question cannot be answered without knowing the MPS

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Definitions:

Fancied Defect

Perceived flaws or imperfections that might not necessarily exist or be as severe as believed by an individual.

Compensation

Payment or reward given for services or to make up for someone's loss, damage, or injury.

Fixed Image

Fixed image is a concept or belief that remains unchanged over time, often impeding the ability to see different perspectives or adapt to new information.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.