If the Marginal Propensity to Consume (MPC) Is 0

question 52

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:

• A) 0.
• B) 1.
• C) 4.
• D) 5.

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Definitions:

Contractual Obligations

Duties that are legally required to be performed under the terms of a contract.

Foreseeable Loss

Losses that could have been anticipated or predicted as a consequence of an action or inaction, relevant in determining liability.

Non Est Factum

A defense in contract law where a party claims they were mistaken about the nature of the document signed, not merely its terms.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," placing the responsibility on the buyer to perform due diligence before making a purchase.