Assume That the MPC Is 0

question 47

Multiple Choice

Assume that the MPC is 0.75.What is the multiplier?

• A) 0.25
• B) 1.33
• C) 4
• D) 7.5

Explain the effect of government policies on saving, investment, and interest rates.

Distinguish between saving and investment in macroeconomics.

Analyze the impact of budget deficits and government spending on the loanable funds market.

Understand the roles of saving and investment incentives in economic policy.

---

Definitions:

Authentication Server

A server that verifies the identities of devices or individuals, typically through passwords or encryption, ensuring secure access.

Network Services

Various services provided over a network, such as file sharing, printing, email, internet access, and database access.

Shielded Cable

A type of electrical cable that has a conductive layer around its core to protect signal integrity by reducing noise and electromagnetic interference.