If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:

When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________

A) more; the production function to shift upward B) less; the production function to shift downward C) more; a movement up along a given production function D) more; a movement down along a given production function

Marginal product of labor refers to the:

A. Last unit of output produced by labor at the end of each period B. Increase in output resulting from employing one more unit of labor C. Total output divided by the number of labor employed D. Smallest unit of the output produced by labor