If the Marginal Propensity to Consume (MPC) Is 0

question 39

Multiple Choice

If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:

• A) 25.
• B) 40.
• C) 96.
• D) 100.

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Definitions:

Production Technology

Refers to the methods, equipment, and processes used to produce goods and services efficiently.

Flat-Panel Televisions

Modern thin televisions that utilize LCD, LED, or Plasma technology for display, offering clearer pictures and space-saving advantages.

Technology Associated

Refers to the tools, machinery, and systems used to enhance production, efficiency, and innovation in various fields.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price during a specified period.