As the Marginal Propensity to Consume (MPC) Increases, the Spending

question 19

Multiple Choice

As the marginal propensity to consume (MPC) increases, the spending multiplier

• A) increases.
• B) decreases.
• C) remains constant.
• D) becomes indefinable.

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Definitions:

Carbon Dioxide

A gas that has no color or smell, created when carbon and organic compounds are burned or through the process of breathing. This gas is taken in by plants during the act of photosynthesis.

Photosynthesis

How green plants and select organisms convert sunlight into nutrients using carbon dioxide and water.

Trophic Level

The position an organism occupies in a food chain or food web, categorized by how the organism obtains energy and nutrients, starting with producers at the base and various levels of consumers above.

Producers

Organisms in an ecosystem that convert energy from the sun or chemicals into food through photosynthesis or chemosynthesis.