If the Marginal Propensity to Consume (MPC) Is 0

question 89

Multiple Choice

If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:

• A) 2.
• B) 5.
• C) 8.
• D) 10.

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Definitions:

Perfection

An ideal state where everything meets the highest standards of accuracy or completeness.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

Economic Efficiency

occurs when resources are allocated in a way that maximizes the production of goods and services at the lowest cost, minimizing waste and inefficiency.

Automobile Safety

Automobile Safety involves the design, equipment, and regulations that aim to minimize the occurrence and consequences of traffic accidents.