Consider a Consumption Function in a Simple Macro Model with Government

question 119

Multiple Choice

Consider a consumption function in a simple macro model with government and taxes.Given a marginal propensity to consume out of disposable income of 0.9 and a net tax rate of 10% of national income,the marginal propensity to consume out of national income is

• A)0.09.
• B)0.72.
• C)0.81.
• D)0.90.
• E)1.00.

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Definitions:

Explicit Memory

A type of long-term memory that involves conscious recollection of factual information, previous experiences, and concepts.

Flashbulb Memory

A highly detailed and vivid memory of an emotionally significant moment or event.

Reconstructive Memory

The process by which memories are pieced together from bits of information, often influenced by personal perception, emotion, and bias.

Recognition

The cognitive process of identifying a previously encountered stimulus.