If the Marginal Propensity to Save in a Closed Economy

question 65

Multiple Choice

If the marginal propensity to save in a closed economy is 0.25 and a lump-sum tax is imposed, the slope of the economy's aggregate expenditures schedule will be:

• A).25.
• B)less than the slope before the imposition of the tax.
• C)greater than the slope before the imposition of the tax.
• D).75.

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Definitions:

Metamorphic Rock

rock that has undergone transformation from an original form due to high pressure, high temperature, or both.

Shear Zones

Regions of the Earth's crust where deformation has occurred due to differential motion, often associated with the movement of tectonic plates.

Foliation

A geological feature that represents repetitive layering in metamorphic rocks caused by the reorientation of minerals under high pressure and temperature.

Lineation

Lineation in geology refers to any linear feature on the surface of a rock or within a rock mass, often created by the flow of the material or the alignment of minerals during deformation.