Which of the Following Equations Is Correct for an Economy

question 184

Multiple Choice

Which of the following equations is correct for an economy that does not have a government or a foreign sector?

• A)MPC x MPS = 1
• B)MPC/MPS = 1
• C)MPC - MPS = 1
• D)MPC + MPS = 1

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Definitions:

Reversibility

The cognitive ability to recognize that numbers or objects can be changed and then returned back to their original condition.

Nonstage Theory

A theory suggesting that development or cognition does not progress through fixed stages, but rather continuously.

Heuristics

Simple, efficient rules, learned or hard-wired by evolutionary processes, that help in making decisions, forming judgments, or solving problems.

Structural

Pertaining to the physical or logical arrangement of a system's parts.