If the Marginal Propensity to Save Is 0

question 20

Multiple Choice

If the marginal propensity to save is 0.6,a $1.2 billion increase in intended investment will increase equilibrium GDP by ________ billion.

• A) $0.4
• B) $0.6
• C) $1.2
• D) $1.67
• E) $2

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Definitions:

Hissing Noise

A sound often produced by gas or steam escaping through a small orifice or by certain animals as a defensive mechanism.

Injured Valves

Refers to damage or dysfunction in the heart valves, which can disrupt normal blood flow and heart function.

Atrial Natriuretic Peptide

A hormone produced by the heart's atrial cells that regulates blood pressure and fluid balance by reducing sodium reabsorption in the kidneys.

Sodium Excretion

Sodium excretion involves the process by which the kidneys remove excess sodium ions from the body, a critical function for maintaining electrolyte balance and blood pressure.