If the Marginal Propensity to Save Is 0

question 76

Multiple Choice

If the marginal propensity to save is 0.10 and the initial decline in investment is $100,by how much will aggregate demand eventually decrease?

• A)$100.
• B)$900.
• C)$1,000.
• D)$10,000.

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Definitions:

Risk Factors

Elements or conditions that increase the likelihood of developing a disease or injury.

Autobiographical Memory

The recollection of a personally meaningful event that took place at a specific time and place in one’s past.

Long-term Memory

A type of memory responsible for the storage of information over an extended period, ranging from a few days to decades.

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and facts about one's life.