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:

Totalitarian System

A political system where the state recognizes no limits to its authority and strives to regulate every aspect of public and private life.

Strict Laws

Refers to regulations that are stringent and rigorously enforced, often carrying heavy penalties for violations.

Military Junta

A government led by a committee of military leaders.

Collective Identity

A shared sense of belonging to a group, where members possess common interests, values, and goals, reinforcing a sense of unity.