If the Marginal Propensity to Consume Is 4/5, Then a Decrease

question 139

True/False

If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion.

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Definitions:

Status Offense

An action that is considered a violation of the law only because of the age of the perpetrator, such as truancy or underage drinking.

White-Collar Crimes

Non-violent crimes committed by individuals or corporations in the course of their professional lives, often for financial gain.

Identity Statuses

Theories or stages that describe the process of developing an identity, as proposed by psychologist James Marcia.

Commitment

A pledge or promise to do something; often refers to dedication towards a cause, activity, or relationship.