Suppose an Economy's Marginal Propensity to Consume (MPC) Is 0

question 97

Multiple Choice

Suppose an economy's marginal propensity to consume (MPC) is 0.6. Then 1 + MPC + MPC² + MPC³ = 2.176 and, if we continued adding up terms in this geometric series, we would get closer and closer to the multiplier value of

• A)1.96.
• B)3.
• C)1.67.
• D)2.5.

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Definitions:

Nonviolent Resistance

A method of protest that seeks to achieve goals through symbolic protests, civil disobedience, economic or political noncooperation, without using violence.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing the role of Jesus as savior and the son of God.

Communist Control Act

A U.S. federal law enacted in 1954 that aimed to outlaw the Communist Party USA and criminalize membership in, or support for, the party or "communist-action" organizations.

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