If the Marginal Propensity to Save Is 0

question 76

Multiple Choice

If the marginal propensity to save is 0.40, a $20 billion increase in investment spending would cause equilibrium output to:

• A)increase by $50.
• B)increase by $80.
• C)decrease by $33.
• D)decrease by $40.
• E)decrease by $20.

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Definitions:

Monogamy

A mating system in which an individual has only one mate at a time or forms a long-term pairing with a single partner.

European Beavers

A species of beaver native to Europe, known for its dam-building activities and significant effects on ecosystems.

Genetic Offspring

Individuals produced by the reproductive processes of their parents, carrying genetic material from both.

Long-term Storage

The preservation of information, materials, or biological matter over extended periods, often for future use or analysis.