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If the Marginal Propensity to Consume Is 0

question 204

Multiple Choice

If the marginal propensity to consume is 0.6; full employment income is $500; 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:

Four-Figure Accuracy

A measurement precision indicating that a value is accurate to the nearest thousand, often important in geographical locations or scientific measurements.

Simple Interest

Interest calculated merely on the primary sum, or on the part of the primary sum that remains unsettled.

Nearest Cent

Rounding an amount to the closest cent, often used in financial transactions to ensure accuracy.

One Decimal Place

A numerical value rounded to a single digit following the decimal point.

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