If the Marginal Propensity to Consume (MPC)equals 0

question 144

Multiple Choice

If the marginal propensity to consume (MPC) equals 0.9,the multiplier is _____.

• A)1
• B)2
• C)5
• D)10
• E)12

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Definitions:

Machine Language

The fundamental language consisting of binary code that can be directly understood and executed by a computer's central processing unit (CPU).

Pascaline

An early mechanical calculator invented by Blaise Pascal in the 17th century, capable of performing addition and subtraction.

Main Memory

The primary storage area in a computer where data and programs that are in active use are stored; also known as RAM (Random Access Memory).

Central Processing Unit

The primary component of a computer that performs most of the processing inside a computer, executing instructions from programs.