If the Marginal Propensity to Consume (MPC) Is 0

question 60

True/False

If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is 2.

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Definitions:

Non-pecuniary Job Benefits

Non-pecuniary job benefits are perks or advantages of employment that do not involve direct monetary payment, such as a flexible working schedule or health insurance.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, nationality, disability, or sexual orientation instead of job qualifications or performance.

Tournament Pay

A compensation structure where rewards are based on relative performance, often used in settings where output is hard to measure individually.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding all other factors constant.