If the Marginal Propensity to Consume Is Equal to 0

question 22

Multiple Choice

If the marginal propensity to consume is equal to 0.75,the spending multiplier is equal to

• A) 4.0.
• B) 1.75.
• C) 0.25.
• D) 0.57.
• E) 1.33.

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Definitions:

Postmodern Imperialism

The extension of influence or control by Western powers over other societies in a manner that is subtle, often through cultural or economic means, under the guise of globalization or modernization.

Transnational Organization

Entities that operate across national borders, integrating global processes, cultures, and economic systems.

Heterogeneity

The quality or state of being diverse and varied in composition, including differences in cultural, socioeconomic, and demographic characteristics among groups or individuals.

Cultural Differentialism

The belief or perspective that cultures are inherently different and should be recognized for their distinct qualities that set them apart from other cultures.