Suppose the Marginal Propensity to Consume Is Equal to 0

question 143

Multiple Choice

Suppose the marginal propensity to consume is equal to 0.75.If the government lowers tax rates and tax revenue falls by $100 million,then disposable income will increase by________ million and consumption spending will initially increase by ________ million.

• A) $100; $75
• B) $100; $25
• C) $75; $25
• D) $75; $100
• E) $100; $100

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Forbidden Impulse

An unconscious wish or desire that is deemed unacceptable or taboo by societal standards and is often repressed.

Anxiety

A sensation of apprehension, tension, or discomfort, often in anticipation of an upcoming event or regarding a situation whose outcome is not yet known.

Impulse Gratification

The immediate fulfillment of desires or impulses without consideration for the long-term consequences.

Rationalisation

A defense mechanism in psychology where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.