The Simple Multiplier

question 9

Multiple Choice

The simple multiplier

• A)when divided by consumption spending equals saving
• B)is defined as 1.0 divided by the marginal propensity to save
• C)is defined as 1.0 divided by the marginal propensity to consume
• D)is equal to the MPS plus the MPC
• E)is equal to the MPS minus the MPC

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Definitions:

System of Equations

A set of equations with the same variables, where the solution must satisfy all equations simultaneously.

Hyperbola

A type of smooth curve lying in a plane, consisting of two branches, which are mirror images of each other, and which open away from each other.

Center and Vertices

Key elements in geometry, specifically for ellipses and hyperbolas, where the center is the midpoint of the vertices (the major points).

Method of Substitution

A strategy for solving systems of equations by replacing variables with equivalent expressions to simplify the system.