If the Marginal Propensity to Consume = 0

question 23

Multiple Choice

If the marginal propensity to consume = 0.75, then:

• A) the marginal propensity to save = 0.75.
• B) the marginal propensity to save = 0.25
• C) the marginal propensity to save = 0.20.
• D) since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.

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Definitions:

Government-Run Employment Agencies

Public institutions designed to help individuals find jobs and employers to find suitable candidates, often providing additional services like career counseling and training.

Public Training Programs

Educational or vocational training initiatives funded or provided by the government to improve workforce skills.

Job Search Efficiency

The effectiveness with which individuals can find suitable employment, often influenced by factors like skill levels, market conditions, and search methods.

Natural Rate Of Unemployment

The normal rate of unemployment around which the unemployment rate fluctuates.