The Larger the Value of the Marginal Propensity to Save

question 289

Multiple Choice

The larger the value of the marginal propensity to save (MPS)

• A) the larger is the value of the multiplier.
• B) the larger is the value of the marginal propensity to consumption (MPC).
• C) the larger is the value of autonomous consumption.
• D) the smaller is the value of the multiplier.

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Definitions:

Required Return

The minimum expected return by investors for investing in a non-risk-free asset, taking into account the risk associated with the investment.

Stock Payment

Compensation methods using shares of the company's stock, often employed in employee remuneration plans.

Annual Dividends

Refers to the total dividends paid out by a company to its shareholders over a year.

Rate Of Return

The speculator's profit or loss on an investment throughout a specific tenure, calculated as a percentage of the investment’s entry cost.