If the MPC Increases from 0

question 386

Multiple Choice

If the MPC increases from 0.75 to 0.80 and there are no income taxes or imports,

• A) the multiplier becomes larger.
• B) the slope of the savings function becomes larger.
• C) the slope of the consumption function becomes smaller.
• D) the multiplier becomes smaller.

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Definitions:

Disproportionate Access

Unequal opportunities or rights to resources, services, or positions, often affecting marginalized communities.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Intellectually Stimulating

Activities or environments that provoke thought, encourage learning, and challenge cognitive abilities, enriching intellectual growth.

Oppositional Culture Theory

A sociological theory suggesting that in certain communities, especially among minorities, there are cultural norms that value behaviors and attitudes at odds with traditional success paths such as academic achievement.