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If the Marginal Propensity to Consume Is 0

question 41

Multiple Choice

If the marginal propensity to consume is 0.6; full employment income is $1,000; and the current equilibrium is $750, a(n) _____ gap exists, such that a(n) _____ in spending equal to _____ is needed to close the gap.


Definitions:

Archegonia

Egg-producing structures, as in the moss life cycle.

Gametophyte

Haploid generation of the alternation-of-generations life cycle of a plant; produces gametes that unite to form a diploid zygote.

Alternation of Generations

A reproductive cycle of certain plants and algae that involves a regular alternation between two distinct forms: the sexual phase (gametophyte) and the asexual phase (sporophyte).

Liverwort

Bryophyte with a lobed or leafy gametophyte and a sporophyte composed of a stalk and capsule.

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