If the Marginal Propensity to Consume Is 0

question 184

Multiple Choice

If the marginal propensity to consume is 0.8, full-employment output is $14 trillion, and current output is $13.5 trillion, then investment spending must _____ to reach full-employment output.

• A) decrease by $0.5 trillion
• B) increase by $0.1 trillion
• C) increase by $0.4 trillion
• D) increase by $0.5 trillion

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Definitions:

Foreign Substances

Substances that are not naturally found within an organism or system, often implying exposure to chemicals, toxins, or pathogens from external sources.

Stress

The experience of emotional or mental pressure due to tough or unfavorable conditions.

Physical Illness

Physical illness is a condition that impairs the normal functioning of the body, often characterized by specific symptoms and signs.

Health Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions regarding health and disease.