If the Marginal Propensity to Consume = 0

question 69

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 = 1.33.
• C) the marginal propensity to save = 0.20.
• D) the marginal propensity to save = 0.25.

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Definitions:

Probability

An indicator of how probable it is for an event to happen, represented by a number ranging from 0 to 1.

Births

The occurrence of bringing forth a new individual from a parent organism, initiating a new life.

Independent

A condition where two events have no influence on each other, making their occurrences or outcomes entirely unrelated.

Seat Belts

Safety straps installed in vehicles designed to secure passengers during a collision, reducing the risk of injury or death.