If the Marginal Propensity to Save Is 0

question 45

Multiple Choice

If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase

• A) GDP by $120 billion.
• B) GDP by $20 billion.
• C) saving by $25 billion.
• D) consumption by $80 billion.

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Definitions:

Low-Context Negotiators

Negotiators who prefer explicit, direct communication and rely less on context, background, and non-verbal cues to convey meaning.

Stereotyping

The act of ascribing generalized and often inaccurate or unfair beliefs about characteristics, attributes, and behaviors to members of a particular group.

Generalized Attributes

Broadly defined characteristics or qualities that can apply to a range of entities, situations, or individuals without precise specifications.

Low-Context Culture

In communication, a low-context culture is one where messages and communication are explicit, detailed, and precise, relying less on unspoken context and more on explicit verbal information.