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.

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Definitions:

Virtual Groups

Groups of individuals who interact via digital platforms and communication technologies, typically for a shared purpose or goal, without meeting in physical spaces.

Attribution Process

The cognitive process by which people explain the causes of behavior and events.

Computer-Mediated Communication

The exchange of messages between two or more individuals through the use of digital devices, such as computers and smartphones.

Informational Influence

A social influence process where an individual conforms to the opinions or behaviors of a group, believing the group has more accurate information.