If the Marginal Propensity to Consume Is 0

question 121

Multiple Choice

If the marginal propensity to consume is 0.75 and government spending decreases by $2,000 billion,what is the change in GDP?

• A) -$2,000 billion
• B) -$8,000 billion
• C) $2,000 billion
• D) $1,500 billion
• E) $8,000 billion

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Definitions:

Drunk Drivers

Individuals who operate a vehicle while under the influence of alcohol beyond legal limits, posing risks to safety.

Common Sense

Sound practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by nearly all people.

Prediction

The act of making an educated guess about a future event or outcome based on current data or observations.

Gender-Balanced Group

A group composed of individuals in such a way that there is an equal or nearly equal number of members of different genders.