If the Marginal Propensity to Consume Is 0

question 192

Multiple Choice

If the marginal propensity to consume is 0.75 and investment spending decreases by $20 billion,what will be the overall effect on GDP?

• A) GDP will decrease by $20 billion
• B) GDP will increase by $15 billion
• C) GDP will decrease by $80 billion
• D) GDP will decrease by $30 billion
• E) GDP will decrease by $26.7 billion

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Definitions:

Leaders

Individuals who guide or direct a group, organization, or country towards achieving collective goals, often through inspiration, vision, and ensuring team cohesion.

Implicit Leadership Theories

Personal beliefs or assumptions individuals hold about the traits and abilities that make someone an effective leader, influencing how leaders are perceived and evaluated.

Insightful Comments

Observations or remarks that show a deep understanding of a topic or situation, often shedding new light on it.

Group's Leader

Describes the person who is recognized as guiding, directing, and influencing the actions and opinions of a group towards achieving its objectives.