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:

Point Estimate

A single value or statistic that serves as the best guess or most reasonable approximation of a population parameter.

Hypothesis

An educated guess or proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Causal Attribution

The approach individuals use to ascertain the origins of their and others' conduct.

If-Then Statement

A conditional statement in logic and programming that connects an action or response to a preceding condition.