If That the Marginal Propensity to Save (MPS)increased from 0

question 32

Multiple Choice

If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to

• A)decrease.
• B)increase.
• C)stay the same.
• D)None of the above is correct.

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Definitions:

Gallbladder

A small organ located under the liver that stores and concentrates bile, a digestive fluid produced by the liver.

Stores Bile

The gallbladder is the organ responsible for storing bile produced by the liver, releasing it into the small intestine to aid in digestion.

Secretin

A hormone secreted by the small intestine that stimulates the pancreas to release bicarbonate, neutralizing stomach acid.

Disaccharidases

Enzymes located in the small intestine that catalyze the breakdown of disaccharides into monosaccharides, facilitating absorption.