Consider a Simple Macro Model with Demand-Determined Output

question 85

Multiple Choice

Consider a simple macro model with demand-determined output.In such a model,the smaller the marginal propensity to spend,the

• A)smaller the MPS.
• B)smaller the simple multiplier.
• C)larger is investment.
• D)larger the MPC.
• E)larger the simple multiplier.

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Definitions:

Relationship

Refers to a connection, association, or interaction between two or more variables, entities, or individuals.

Multiple Correlation

A statistical technique that measures the strength of a relationship between one dependent variable and several independent variables.

Criterion Variable

The dependent variable in a statistical analysis that the researchers are most interested in understanding or predicting.

Predictor Variables

Predictor variables are independent variables in statistical models that are used to predict outcomes or influences on a dependent variable.