If the Spending Multiplier Is 5,what Is the Marginal Propensity

question 93

Multiple Choice

If the spending multiplier is 5,what is the marginal propensity to consume in the economy?

• A) 0.4
• B) -0.8
• C) 0.5
• D) 0.75
• E) 0.8

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, a concept developed in infancy.

Egocentrism

A cognitive bias that leads to difficulty in understanding or acknowledging the viewpoint of others, often seen in the early stages of childhood development.

Young Apprentices

Individuals, often minors, who are learning a trade or craft from a skilled employer, gaining practical experience while often receiving some form of education.

Jean Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.