If the Marginal Propensity to Consume Is ________,Then a $2

question 83

Multiple Choice

If the marginal propensity to consume is ________,then a $2 trillion increase in disposable income increases consumption expenditure by $1.2 trillion.If the marginal propensity to consume is ________,then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion.

• A)1.67;2.25
• B)1.2;1.6
• C)0.6;0.8
• D)6.0;8.0
• E)None of the above because a $2 trillion increase in disposable income always leads to a $2 trillion increase in consumption expenditure.

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Definitions:

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause distress or anxiety.

Compulsive Behaviors

Repetitive actions performed persistently and often against the individual's will, usually as a response to obsessive thoughts, leading to significant distress or impairment.

Phobias

Persistent, excessive, irrational fears of specific objects, activities, or situations that lead to a compelling desire to avoid them.

Social Phobias

A type of anxiety disorder characterized by an overwhelming and unreasonable fear of social situations, leading to avoidance and distress.