Suppose Economists Observe That an Increase in Government Purchases of $10

question 116

Multiple Choice

Suppose economists observe that an increase in government purchases of $10 billion raises aggregate expenditures by $40 billion. These economists would estimate that the marginal propensity to save is

• A) 0.25.
• B) 0.75.
• C) 4.
• D) 30.

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Definitions:

Institutionalized

refers to the process of becoming deeply ingrained within an institution or established system, often losing autonomy or the ability to function independently.

Emergency Commitment

Involving someone being involuntarily admitted to a mental health facility for a short period due to a personal crisis that poses an imminent risk to themselves or others.

Future Dangerousness

A prediction or assessment regarding an individual's potential for harm or violent behavior in the future.

Long-Term Predictions

Forecasts or estimations about events or developments that are expected to happen in the distant future.