If the Multiplier Is 3, Then the MPC Is

question 32

Multiple Choice

If the multiplier is 3, then the MPC is

• A)1/3.
• B)3/4.
• C)4/3.
• D)2/3.

---

Definitions:

Hidden Action

A situation in principal-agent relationships where the agent's actions are not fully observable by the principal, potentially leading to agency problems.

Hidden Characteristic

A quality of a product or service that is not immediately observable to the buyer, often leading to information asymmetry in the market.

Transitive

In logic and mathematics, transitive refers to a relation where if it applies between successive pairs in a sequence, it also applies between any two members taken in order. For example, if A is larger than B, and B is larger than C, then A is larger than C.

Preferences

Indications of the choices or selections made by individuals or groups based on tastes, likes, or desires, often influencing decision-making.