If the Marginal Propensity to Consume Is 0

question 1

Multiple Choice

If the marginal propensity to consume is 0.85, the value of the spending multiplier will be

• A) 0.15.
• B) 1.17.
• C) 5.1.
• D) 6.67.

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Definitions:

Parallel

A circuit configuration where components are connected across common points or junctions, allowing current to divide and flow through multiple paths.

Series

Components in an electrical circuit are said to be in series if they are connected along a single path, so the same current flows through all of the components.

Inductive Reactance

The opposition to alternating current flow due to the inductance of a component or circuit, measured in ohms.

Reactive Power

Also called wattless power. Calculated by multiplying reactive voltage by reactive current. Can be produced by inductive or capacitive loads.