If the Marginal Propensity to Save Is 0

question 194

Multiple Choice

If the marginal propensity to save is 0.2,how much is the spending multiplier?

• A) 0.8
• B) 1.25
• C) 5
• D) 8

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Definitions:

Covaries

When two variables change in relation to each other, suggesting a potential relationship or correlation between the two.

Double-Blind Procedure

A research or testing method in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Experimenter's Bias

A distortion in research outcomes due to the researcher's expectations influencing the study.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, often leading to over-reporting of 'positive' behaviors or under-reporting of 'negative' behaviors.