If the Marginal Propensity to Consume Is 0

question 166

Multiple Choice

If the marginal propensity to consume is 0.9, then the spending multiplier is

• A) 1.
• B) 7.
• C) 9.
• D) 10.

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Definitions:

Hypothalamus

A region of the brain that plays a central role in controlling hormones, body temperature, hunger, thirst, fatigue, sleep, and circadian cycles.

Amygdala

A region of the brain that is crucial for emotion processing, particularly fear and pleasure, influencing both emotional responses and memory formation.

Ethology

The scientific study of animal behavior, often with a focus on behavior under natural conditions, and viewing behavior as an evolutionarily adaptive trait.

Frustration-Aggression Hypothesis

Originally the idea that aggression is always preceded by frustration and that frustration inevitably leads to aggression. Revised to suggest that frustration produces an emotional readiness to aggress.