If the Value of the Marginal Propensity to Consume (MPC)is

question 179

Multiple Choice

If the value of the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is:

• A)10.
• B)1.1.
• C)90.
• D)100.

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Definitions:

Taxable Income

The amount of income on which the income tax is determined.

Standard Deduction

A set amount that reduces the income subject to tax, which taxpayers can claim on their tax return, as an alternative to itemizing deductions.

Exemption

A deduction allowed by law to reduce the amount of income that would otherwise be taxed.

Property Taxes

Property Taxes are levies on property owned by individuals or other legal entities, usually based on the value of the property.