If the Marginal Propensity to Consume Is 0

question 112

Multiple Choice

If the marginal propensity to consume is 0.75, then the value of the tax multiplier is

• A) -2.5.
• B) -3.
• C) 1.25.
• D) 1.4.

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Definitions:

Inner Biological Processes

The complex and interrelated functions occurring within living organisms to sustain life, including cellular respiration, digestion, and brain activity.

Individual

Referring to a single, separate person distinct from a group or collective.

Self-Knowledge

The understanding a person has about themselves, including their thoughts, feelings, experiences, and abilities, often viewed as a key component of psychological well-being.

Agent Self

A concept referring to the aspect of an individual's self that is responsible for decision-making and self-control.