Suppose the Marginal Propensity to Consume in Economia Is 0

question 99

Multiple Choice

Suppose the marginal propensity to consume in Economia is 0.75. People feel increasing confidence in their economy and spend $5 billion more on vacations. Equilibrium income will then rise by

• A) $4 billion.
• B) $5 billion.
• C) $20 billion.
• D) $75 billion.

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Definitions:

Essentialist Arguments

Arguments based on the belief that certain traits, behaviors, or attitudes are innate and fundamental to a particular group or identity, often used in discussions of gender, race, and ethnicity.

Sociobiologists

Scientists who study the biological basis of all forms of social behavior across species, including humans, often focusing on the evolutionary aspects.

Evolutionary Psychologists

Researchers who study human behavior, mind, and traits as adaptations shaped by evolutionary processes.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.