If, in an Economy, a $200 Billion Increase in Consumption

question 191

Multiple Choice

If, in an economy, a $200 billion increase in consumption spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the marginal propensity to consume and the multiplier are, respectively,

• A)0.8 and 5.0.
• B)0.4 and 2.5.
• C)0.4 and 1.67.
• D)0.2 and 1.25.

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Definitions:

Sexual Feelings

Emotions and physical sensations associated with sexual attraction and activities.

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A phase of growth or progression in a biological organism, psychological process, or social structure, marking significant transitions or milestones.

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The final phase of adolescence, typically occurring from ages 18 to 24, characterized by increased independence and the transition into adult roles and responsibilities.