If the Marginal Propensity to Consume Is 0

question 134

Multiple Choice

If the marginal propensity to consume is 0.9 in a private closed economy, a $20 billion decline in investment spending will decrease

• A)GDP by $20 billion.
• B)GDP by $100 billion.
• C)saving by $20 billion.
• D)consumption by $200 billion.

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Definitions:

Rationales

The reasons or explanations behind decisions, actions, or beliefs, providing logical bases for justifying certain courses of action.

Incarceration

The act of confining an individual, typically as a legal punishment for a crime.

Recidivism

The tendency of a convicted criminal to reoffend, often used as a measure of the effectiveness of criminal justice systems and rehabilitation programs.

Strain Theories

Theories in sociology that relate the origins of deviant behavior and crime to the pressures and stresses felt by individuals to achieve societal goals when they lack the means to do so legally.