Consider a Simple Macro Model with a Constant Price Level

question 119

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is 0.4,the simple multiplier is

• A)0.
• B)0.4.
• C)1.67.
• D)2.5.
• E)4.0.

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Definitions:

Organizational Environment

The external forces, conditions, and entities that affect the operation and strategies of an organization.

Business Activities

The various actions, operations, and pursuits that a company engages in to achieve its business objectives and generate revenue.

Facilitation Payment

A type of bribe made to expedite or secure the performance of a routine or necessary action to which the payer is legally entitled.

Utilitarian

A philosophy which suggests that actions are right if they are beneficial for the majority, emphasizing the greatest happiness for the greatest number.