If the Income Multiplier Is 4,the Value of the Marginal

question 131

Multiple Choice

If the income multiplier is 4,the value of the marginal propensity to consume is

• A)0.2.
• B)0.5.
• C)0.75.
• D)1.

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Definitions:

Compounded Monthly

A method of calculating interest where the interest is added to the principal amount each month, with each subsequent calculation including the previously accumulated interest.

Interest

The cost associated with the right to borrow funds, often represented as a percentage rate per year.

Compounded Semi-Annually

An approach to calculating interest where the interest is added to the principal twice a year.

Loan

The lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc.