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:

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Upper-Income Americans

Individuals or households that fall within the higher income brackets of the population, often associated with greater purchasing power and economic influence.

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