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:

Reproduce

The natural method through which new organisms are produced to guarantee the survival of a species.

Fragrant Odors

Smells that are pleasantly sweet or aromatic, often produced by flowers, herbs, spices, or essential oils.

Pleasant Memories

Recollections that are enjoyable and positive.

Evoked

Brought about or called to mind; in neuroscience, it can refer to responses or potentials generated by the brain in reaction to a stimulus.