Suppose That the Marginal Propensity to Save (MPS) Equals 0

question 366

Multiple Choice

Suppose that the marginal propensity to save (MPS) equals 0.4. The value of the multiplier would be

• A) 0.25.
• B) 0.4.
• C) 2.5.
• D) 4.

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Definitions:

Data

Information collected for analysis or used to reason, discuss, or calculate something.

Significantly Distorted

Describes data or results that are heavily altered or skewed from their original or expected form, often beyond the effect of chance.

75th Percentile

The value below which 75% of the data points in a dataset lie.

Q3

The third quartile in a data set, representing the value below which 75% of the data falls.