If the Marginal Propensity to Consume Is 0

question 152

Multiple Choice

If the marginal propensity to consume is 0.5,what is the value of the expenditure multiplier?

• A) 1.0
• B) 1.5
• C) 2.0
• D) 0.5
• E) 10.0

---

Definitions:

Nondurable Goods

Products with a limited lifespan, intended for consumption or use over a short period, such as food or paper products.

Tangible Attributes

Physical features or characteristics of a product that can be directly perceived by the senses, such as size, shape, color, or weight.

Intangible Attributes

Characteristics of a product or service that cannot be physically touched or seen, such as the brand reputation or the level of customer service.

Nondurable Good

Products that are consumed or are only usable for a short period of time, such as food, paper products, and fuel.