If the Marginal Propensity to Consume (MPC) Is 0

question 94

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8, the simple spending multiplier is ____

• A) 1/0.8.
• B) 1/0.4.
• C) 1/0.2.
• D) 1/8.
• E) 8.

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Definitions:

Internal Consistency

A measure of the reliability of a test or scale; assessing if various items that propose to measure the same general construct produce similar scores.

Licensure Exam

A licensure exam is a standardized test that individuals must pass to receive a professional license in a specific field or occupation.

Mean

A statistical measure that represents the average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Range

The difference between the highest and lowest values in a data set, representing the spread or distribution of the values.