The Marginal Propensity to Consume Is 0

question 78

Multiple Choice

The marginal propensity to consume is 0.50,marginal propensity to invest is 0.20,and the marginal propensity to import is 0.05.What is the size of the multiplier?

• A)1.00
• B)2.86
• C)3.00
• D)0.50

---

Definitions:

Criminal Law

The body of law dealing with actions considered harmful or offensive against the public, society, or the state, subject to punishment such as imprisonment or fines.

Statute

A law that has been formally enacted by a federal or state legislative body.

Civil Action

A legal proceeding initiated by an individual or entity, typically for the resolution of a dispute involving private rights and remedies.

Criminal Violation

An act that breaches the laws governing society, subjecting the offender to legal sanctions.