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

question 279

Multiple Choice

Suppose that the marginal propensity to save (MPS) equals 0.2. The value of the multiplier would be

• A) )8.
• B) 1.25.
• C) 2.
• D) 5.

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Definitions:

Community Environment

The social, cultural, and physical setting in which a community exists, influencing its members' interactions and activities.

Housing Stock

The total quantity of residential buildings available in a particular area at a given time.

Transportation System

The infrastructure, policies, technologies, and operations that facilitate the movement of people and goods from one location to another.

Interagency Environment

characterizes the setting or context in which multiple agencies or organizations interact or collaborate, often in the fields of government, social services, or emergency response.