If the Marginal Propensity to Consume Is 0

question 25

Multiple Choice

If the marginal propensity to consume is 0.95 and government spending falls by $200, then equilibrium output on the Keynesian cross diagram (for a fixed interest rate) rises by

• A) $180.
• B) $200.
• C) $380.
• D) none of the above.

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Definitions:

Paid Labor Force

Refers to the segment of the population that is engaged in compensated work, within formal or informal sectors, contributing to the economy.

Women

Female human beings, often focusing on their social, cultural, or biological distinctions from men.

Men

Refers to adult male human beings, often considered in the context of gender roles, social structures, and biology.

Gender Expectations

Societal norms and beliefs about the behaviors, attitudes, and characteristics appropriate for individuals based on their perceived sex.