Assume in a Closed Economy That Taxes Are Fixed and the Marginal

question 124

Multiple Choice

Assume in a closed economy that taxes are fixed and the marginal propensity to consume is equal to 0.8. What is the government purchases multiplier?

• A)10
• B)5
• C)4
• D)3

---

Definitions:

Self Schema

A cognitive framework comprising beliefs and ideas about oneself that guides processing of self-relevant information.

Script Schema

Cognitive frameworks that provide knowledge about the sequence of actions that are typically involved in particular social scenarios.

Domestic Schema

A cognitive framework that organizes information related to household or familial roles, responsibilities, and dynamics.

Impression Management

The process by which individuals attempt to control the perceptions or impressions of others about themselves, often through strategic self-presentation or behavior.