If the Marginal Propensity to Consume Is 4/5, the Value

question 21

Multiple Choice

If the marginal propensity to consume is 4/5, the value of the multiplier is:

• A)20.
• B)5.
• C)1
• D)1/5
• E)0.8.

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Definitions:

Future Value

A specified future date's value of an asset or cash, which is equivalent to a certain amount of money today.

Model Airplanes

Miniature replicas of airplanes designed either for collecting or as a hobby to assemble, often used in the context of model building or flying.

Valued

Appreciated or considered of high worth, especially in a monetary or material sense.