The Closed Economy Multiplier Is Equal to _____________

question 51

Multiple Choice

The closed economy multiplier is equal to _____________.

• A)The reciprocal of the marginal propensity to save
• B)The reciprocal of the marginal propensity to consume
• C)The slope of the savings function
• D)The ratio of savings to investment

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Definitions:

Job Displacement

Occurs when employees lose their jobs due to factors such as automation, economic downturns, or structural changes in the industry.

Global Economic Shift

Major changes in the global economy that affect international trade, finance, production, and employment patterns.

Ecclesia

An established state religion or organized church that is intricately linked with the political and societal structure.

Organized Power

The structured and systematic way in which authority and control are exercised in societies or organizations.