Other Things Being Constant, If the Marginal Propensity to Save

question 72

Multiple Choice

Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)

• A)decreases by $10 million.
• B)increases by $90 million.
• C)decreases by $1 billion.
• D)increases by $1 billion.

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Definitions:

Invalid Call

Refers to a function or method call in programming that is not correctly executed, due to wrong arguments or improper context.

ExampleRecursion

A programming technique where a function calls itself directly or indirectly to solve a problem.

Output

The result produced by a computer program or process, which can be displayed on a screen, stored in a file, or sent to a device.

ExampleRecursion

A method in programming where a function is used to call itself, either directly or indirectly, to address a problem by dividing it into more manageable, smaller issues.