If the Marginal Propensity to Consume Is

question 159

Multiple Choice

If the marginal propensity to consume is.80 and both taxes and government purchases increase by $50 billion, GDP will:

• A)increase by $50 billion.
• B)decrease by $50 billion.
• C)increase by $10 billion.
• D)decrease by $10 billion.

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Definitions:

Efficacy

The ability to produce a desired or intended result.

Power

The probability that a test will correctly reject a false null hypothesis; in other words, the ability of a study to detect an effect if there is one.

Feasibility

The measure of how easily or conveniently a proposed project or study can be carried out or implemented.

Effectiveness

The degree to which a specific intervention, procedure, regimen, or service produces a beneficial result under real-world conditions.