Exhibit 13.1 Assume the Marginal Propensity to Consume for U.S.households Equals 0.9,and

question 92

Multiple Choice

Exhibit 13.1
Assume the marginal propensity to consume for U.S.households equals 0.9,and the marginal propensity to import for the United States equals 0.1.Suppose there occurs an increase in investment of $10 billion at each level of income.
-Refer to Exhibit 13.1.The value of the multiplier for the United States equals:

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Nervous System

A network of cells and fibers that transmits nerve impulses between parts of the body.

Fat Burned

The process of using body fat as energy during metabolism, often emphasized in exercise and weight loss contexts to denote the utilization of fat stores for fuel.

Maximum Heart Rate

The highest number of beats per minute a heart can achieve during maximum physical exertion, varying by age.

Catabolism

The breakdown of complex molecules in living organisms to form simpler ones, accompanied by the release of energy.