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:

Angst

In existential philosophy, the anxiety that stems from doubts about the meaning and purpose of life; also called existential anxiety.

Nothingness

A concept referring to the absence of anything at all, often discussed within philosophical, existential, or metaphysical contexts.

Alienation

The feeling of being isolated or estranged from others or oneself, often associated with a loss of connection or dissatisfaction.

Eigenwelt

In Binswanger’s phenomenological analysis, the experience of experience itself; the result of introspection.