Suppose the Marginal Propensity to Consume (MPC) Is Equal to 0.8.What

question 140

Multiple Choice

Suppose the marginal propensity to consume (MPC) is equal to 0.8.What is the simple tax multiplier?  

• A) -4 
• B) -3 
• C) 1 
• D) 5

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Definitions:

Cephalocaudal

Cephalocaudal is a principle of development that describes how growth tends to begin at the head and upper body parts and then proceeds down to the rest of the body.

Experience-Dependent

Experience-dependent refers to the concept that certain aspects of brain development, learning, and memory formation are influenced by individual encounters and interactions with the environment.

Experience-Expectant

A process by which the brain develops and modifies itself in response to basic environmental stimuli.

Brain Maturation

The process by which the brain develops structurally and functionally, reaching full development.