If the Marginal Propensity to Consume (MPC)is 0

question 184

Multiple Choice

If the marginal propensity to consume (MPC) is 0.60, what is the expenditure multiplier?

• A)0.4.
• B)0.6.
• C)2.5.
• D)6.0.

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Definitions:

Inference Forms

Patterns or templates of reasoning that show the logical connection between premises and conclusion.

MP

An abbreviation that could refer to Modus Ponens, a logical form where from premises of the form "If P, then Q" and "P", it's concluded that "Q".

MT

Another term for Modus Tollens, it is the form of logical argument implying the inverse of a conclusion based on the negation of its consequence.

HS

An abbreviation often referring to Hypothetical Syllogism, a logical argument form using two conditional statements to deduce a conclusion.