The Higher the Marginal Propensity to Consume,the

question 2

Multiple Choice

The higher the marginal propensity to consume,the

• A)smaller will be the simple multiplier.
• B)more insulated will be consumption spending from exogenous shocks to the economy.
• C)less effective will be any given monetary or fiscal policy.
• D)more unstable the economy will be.

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Definitions:

Non-aromatic

Compounds that do not fulfill the criteria for aromaticity, lacking a conjugated system of pi electrons in a ring structure.

Benzylic Hydrogens

Hydrogen atoms attached to the carbon atom that is directly connected to a benzene ring, often more reactive in chemical reactions.

Viscinal Dihalide

A type of dihalide compound where two halogen atoms are attached to adjacent carbon atoms in an organic molecule.

Degenerate Orbitals

Orbitals that have the same energy level but differ in orientation in space, often found in subshells of atoms.