If the Marginal Propensity to Consume Is Equal to 0

question 50

Multiple Choice

If the marginal propensity to consume is equal to 0.70 and income rises by $20 billion in an economy,then consumption spending will increase by:

• A)$6 billion.
• B)$14 billion.
• C)$20 billion.
• D)$28 billion.
• E)$67 billion.

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Definitions:

Written Assessment

Formal evaluation methods that require individuals to provide written responses to measure their knowledge, skills, or abilities.

Group Counseling

A form of therapy involving a group of individuals discussing their issues collectively under the guidance of a counselor.

Nutrition Counselor

A health professional specialized in providing advice and guidance on diet, eating habits, and nutritional health.

Evaluations

The process of assessing or appraising a person, item, or situation to make a judgment about its value, quality, or importance.