If the Marginal Propensity to Consume Is 0

question 59

Multiple Choice

If the marginal propensity to consume is 0.25, it would mean that:

• A) $0.25 of an additional $1 of individuals' after-tax income is spent on consumption.
• B) $0.25 of an additional $1 of individuals' after-tax income is saved.
• C) $0.75 of an additional $1 of individuals' after-tax income is spent on consumption.
• D) None of these are true.

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Definitions:

Stifled

Suppressed, curtailed, or inhibited, often referring to the restriction of growth, expression, or development.

Rebellion

The act of resisting authority, control, or tradition, often manifested through dissent, protest, or revolutionary activities.

Autonomy

The capacity to make an informed, uncoerced decision; often related to independence and self-governance.

Microcultures

Subgroups within a larger cultural or social context, characterized by their own distinct norms, behaviors, and values.