Assume That the Parameters of a Particular Economy Are as Follows

question 157

Multiple Choice

Assume that the parameters of a particular economy are as follows: MPC = 0.6,MPM = 0.1.What is the value of the multiplier?

• A)0.4.
• B)0.5.
• C)1.67.
• D)2.
• E)2.5.

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Definitions:

Central Nervous System

The major part of the nervous system consisting of the brain and spinal cord, which integrates and processes nervous information.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem down to the lumbar region of the vertebral column.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviors such as decision making, planning, and moderating social behavior.

Delayed-response Task

A test of memory and cognitive function requiring an individual to remember a stimulus or information over a period of time before responding.