If the Marginal Propensity to Consume (MPC) Is 0

question 85

Multiple Choice

If the marginal propensity to consume (MPC) is 0.50, the value of the spending multiplier is:

• A) 5.
• B) 1.
• C) 2.
• D) 5

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Definitions:

Specific Performance

A legal remedy in contracts law requiring a party to fulfill their obligations under the contract, as opposed to paying damages.

Transfer Property

The act of legally changing ownership of real estate, assets, or other property from one party to another.

Luxury Home

A high-end, well-appointed residential property that offers luxurious living spaces and amenities.

Injunction

A court order requiring a party to do or to refrain from doing specific acts.