If the Marginal Propensity to Consume Is 0

question 137

True/False

If the marginal propensity to consume is 0.8, then $80 of every additional $100 of income will be spent on consumption.

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Definitions:

Testamentary Trust

A trust created by a will that becomes effective upon the death of the person who created it.

Settlor's Death

The event of the death of an individual who has established a trust, potentially triggering changes in the management or distribution of the trust's assets.

Spendthrift Trust

A type of trust that is created to prevent the beneficiary's assets from being squandered or from being claimed by creditors by providing restricted access to the trust assets.

Personal Representative

An individual appointed to administer the estate of a deceased person.