If the Marginal Propensity to Consume Is 0

question 186

Multiple Choice

If the marginal propensity to consume is 0.5, an increase in consumption by $200 will shift the aggregate demand curve horizontally to the right by

• A) $200.
• B) $400.
• C) $100.
• D) $200.5.

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Definitions:

Implied in Fact Contract

An agreement inferred from the actions, behavior, or circumstances of the parties involved, rather than written or spoken words.

Article 2

Refers to a section of the Uniform Commercial Code that governs the sale of goods in the United States, setting forth the rights, duties, and obligations of sellers and buyers.

Common Law

A body of law based on judicial decisions and customs, as opposed to statutory laws.

Void Contract

An agreement that lacks legal validity or is unenforceable by law from the moment it is created, due to reasons such as illegality or incapacity of one party.