If the Marginal Propensity to Consume Is Equal to 0

question 50

Multiple Choice

If the marginal propensity to consume is equal to 0.70 and income rises by $20 billion in an economy,then consumption spending will increase by:

• A)$6 billion.
• B)$14 billion.
• C)$20 billion.
• D)$28 billion.
• E)$67 billion.

---

Definitions:

REM Rebound

An increase in the frequency and depth of REM (Rapid Eye Movement) sleep following a period of REM sleep deprivation, often leading to more vivid dreams.

Managerialism

Refers to the belief that organizations are more efficient when they are managed by professional managers, often prioritizing management techniques over other considerations.

Organizational Work

Efforts or tasks undertaken within or on behalf of an organization to achieve its goals.

Urban Institute

A policy research organization focused on economic and social policy research, aiming to improve the well-being of people and communities in urban areas.