If the simple spending multiplier is 10, the marginal propensity to save (MPS) is:
a. 1/10.
b. 9/10.
c. 1/9
d. 10/9.
e. 9.
a
Economics
You might also like to view...
Consider a firm that is competitive in both the product and the resource market. The firm incurs a marginal cost of $5. If the marginal product of an additional worker is 20 units, what is the maximum wage that should be offered to the worker?
What will be an ideal response?
Economics
Explain the reasons for the economic "miracle" of the East Asian countries between 1960 and 1997. Is it only because of the common Asian practice of industrial policy and business-government cooperation?
What will be an ideal response?
Economics