Which of the Following Economies Has the Largest Multiplier

question 137

Multiple Choice

Which of the following economies has the largest multiplier?

• A) Economy A with an MPS of 0.5
• B) Economy B with an MPS of 0.1
• C) Economy C with an MPC of 0.8
• D) Economy D with an MPC of 0.6.

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Definitions:

Adulthood

A stage of life characterized by full physical development, legal responsibility, and often psychological maturity.

Self-fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Mastering Skills

The process of acquiring and becoming proficient in a set of skills through practice and learning.

Reaching Goals

The process of setting, pursuing, and achieving objectives, often involving planning and motivation.