If the MPC = 3/5,then the Government Purchases Multiplier Is

question 57

Multiple Choice

If the MPC = 3/5,then the government purchases multiplier is

• A) 5/3.
• B) 5/2.
• C)15.
• D)5.

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Definitions:

Scanlon Plan

A type of gain-sharing program that rewards employees for contributions to productivity improvements through cost savings, emphasizing teamwork and participation.

Future Cost

Predicted financial expenditure associated with an action or decision, considering potential increases in prices or changes in resource availability.

Labour

The human effort, whether physical or mental, that is applied to the production of goods and services.

Goal-Sharing Plans

A type of incentive plan where employees are rewarded if collective goals are achieved, promoting teamwork and collaboration.