If the Marginal Propensity to Save Is 1/8,the Value of the Simple

question 24

Multiple Choice

If the marginal propensity to save is 1/8,the value of the simple multiplier is

• A)8
• B)1/8
• C)2
• D)1/2
• E)4

---

Definitions:

Number Of Shares

The total amount of shares of stock that a company has issued to shareholders, representing ownership in the corporation.

Class

A group of individuals or objects that share common characteristics or attributes.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act that prohibits fraud, misrepresentation, and deceit in the sale of securities.

1933 Act

Officially known as the Securities Act of 1933, it's a U.S. law enacted to ensure transparency in financial statements so investors can make informed decisions about securities.