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:

Biological Factors

Elements resulting from physiological process (genetics, hormones, neurotransmitters) that affect human behavior, development, and health.

Nervios

A cultural-specific syndrome often found in Latin American communities, characterized by anxiety, tension, and a variety of physical symptoms.

Ataque De Nervios

A culturally bound syndrome predominantly seen among Latin American and Latino populations, characterized by episodes of intense emotional upset including crying, screaming, and verbal or physical aggression.

Self-Esteem

Someone's self-perceived valuation of their own importance or esteem.