If the Marginal Propensity to Consume Is 0

question 148

Multiple Choice

If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000,by how much will consumption spending decrease?

• A) $10,000
• B) $500
• C) $50
• D) $5,000
• E) $9,524

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Definitions:

Defined Contribution Retirement Plans

Retirement saving plans where the amount of the future retirement benefits depends on the contributions made by the employee and/or the employer to the employee's account.

Organizational Values

The core principles and beliefs that guide an organization's internal conduct as well as its relationship with the external world.

Employee Attitudes

The feelings, beliefs, and behaviors expressed by workers towards their job, workplace environment, and organizational policies.

Overtax

To burden with excessive demands or taxes.