If the Marginal Propensity to Consume Is 0

question 134

Multiple Choice

If the marginal propensity to consume is 0.9 in a private closed economy, a $20 billion decline in investment spending will decrease

• A)GDP by $20 billion.
• B)GDP by $100 billion.
• C)saving by $20 billion.
• D)consumption by $200 billion.

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Definitions:

Maintenance

The ongoing process of preserving or sustaining a desired level of efficiency or condition in a system, machine, or one's health.

Cardiovascular Health

Refers to the health of the heart and blood vessels, which can be maintained or improved through lifestyle choices such as diet, exercise, and avoiding tobacco.

Vigorous Running

Intense running activity that significantly raises heart rate and energy expenditure, contributing to cardiovascular fitness.

Brisk Walking

A moderate-intensity aerobic activity characterized by walking at a faster pace that increases heart rate while improving cardiovascular health.