In a Macro Model Where the Marginal Propensity to Consume

question 55

Multiple Choice

In a macro model where the marginal propensity to consume out of disposable income is 0.8,the net tax rate is 0.25,and the marginal propensity to import is 0.12,the simple multiplier will be

• A)0.480.
• B)1.471.
• C)1.923.
• D)2.083.
• E)2.110.

---

Definitions:

Planning Process

A systematic approach involving the development of strategies and allocating resources to achieve organizational goals.

Next Financial Year

The forthcoming fiscal period for a business or organization, following the current fiscal year.

Actual Performance

The real, observed outcomes or results achieved by an individual, team, or organization, often compared against planned or expected performance.

Control

The process of directing, monitoring, and adjusting resources and operations to achieve certain objectives.