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If the Marginal Propensity to Consume Is 0

question 3

Multiple Choice

If the marginal propensity to consume is 0.75 and marginal propensity to import is 0.15, then an increase in government spending by 200 will increase GDP by:

Definitions:

Personnel Department

A division within an organization responsible for managing human resources, including recruitment, employment, and workplace culture.

Cost Allocated

Cost allocated refers to the process of distributing expenses in proportion to the cost centers or departments responsible for incurring them.

Assembly Department

A section within a manufacturing facility where components are assembled into finished products.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs, with fixed overhead costs being treated as period expenses.