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:

External Validity

The degree to which the findings of a research can be applied to different settings and different individuals.

Independent Variables

Variables in an experiment that are manipulated or changed by researchers to observe their effects on dependent variables.

Dependent Variable

In experimental research, it's the variable that is being tested and measured.

MMPI Validity Scales

Measures within the Minnesota Multiphasic Personality Inventory designed to assess the test taker’s approach to the test, such as their truthfulness, consistency, and engagement.