If the Marginal Propensity to Consume Is 0

question 255

Multiple Choice

If the marginal propensity to consume is 0.65, the spending multiplier is

• A) 1.33.
• B) 1.54.
• C) 2.86.
• D) 4.

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Definitions:

Fetal Stage

The stage that begins at about eight weeks after conception and continues until birth.

Fertilization

The process of a sperm cell joining with an egg cell to create a zygote, marking the beginning of a new organism's development.

Spontaneous Abortion

A natural loss of a pregnancy before the fetus can survive outside the womb, commonly known as a miscarriage.

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory dish.