If the Marginal Propensity to Consume Is 0

question 127

Multiple Choice

If the marginal propensity to consume is 0.8, by how much will total income increase after an initial $200 is spent?

• A) $40
• B) $160
• C) $200
• D) $1,000

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Definitions:

Experience Guilt

The emotional state that arises from the realization or belief that one has caused harm or violated a moral standard.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Inhibition

The process of restraining or suppressing a response, action, or cognitive process, often discussed in psychology and neuroscience.

Aggressive Behaviors

Actions intended to cause harm or force upon others, either physically or emotionally, as a means of asserting dominance, expressing frustration, or achieving a goal.