If the Marginal Propensity to Save Is 0

question 116

Multiple Choice

If the marginal propensity to save is 0.2 in a private closed economy, a $20 billion rise in investment spending will increase:

• A)GDP by $120 billion.
• B)GDP by $20 billion.
• C)saving by $25 billion.
• D)consumption by $80 billion.

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Definitions:

Behavior Problems

Issues or disturbances in behavior that are considered to be inappropriate or maladaptive, often discussed in the context of work environment or educational settings.

Open-Door Policy

A management approach where leaders encourage openness and transparency in the workplace by allowing employees to give feedback, raise concerns, or discuss problems without fear of reprisal.

Alternative Dispute Resolution

A range of procedures, such as mediation or arbitration, designed to resolve disputes without the need for litigation.

Behavioral Modeling

A training technique that involves the imitation of the behavior of others, observing and mapping successful practices and actions to improve performance.