The Formula for the Simple Spending Multiplier Is

question 20

Multiple Choice

The formula for the simple spending multiplier is

• A) 1/(1 - MPC).
• B) MPC + MPS.
• C) 1/MPC.
• D) 1/(MPC + MPS).

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Definitions:

Evolutionary Psychology

A psychological theory that explores human cognition and actions by considering the principles of natural selection and adaptation.

Genetically Predisposed

Having an inherited tendency or vulnerability to develop certain traits or conditions based on one's genetic makeup.

Biologically Related

Pertaining to beings who share genetic material or have a familial genetic connection.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud, focusing on unconscious processes as they are manifested in a person's present behavior.