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:

Wrists

The joint connecting the hand to the forearm, crucial for the movement and function of the hands.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain.

Vertebrae

The individual bones that form the vertebral column (spine) in vertebrates, providing structural support and protecting the spinal cord.

Spinal Column

The flexible, vertical structure composed of vertebrae that encloses the spinal cord, providing support and facilitating movement.