If the Marginal Propensity to Consume (MPC)is 0

question 36

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $0.5 trillion, then saving will

• A)increase by $0.25 trillion.
• B)increase by $0.5 trillion.
• C)increase by $1 trillion.
• D)remain unchanged.

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Definitions:

LULAC

The League of United Latin American Citizens, a Latino civil rights organization formed in 1929, focused on combating inequality and discrimination faced by Hispanics in the United States.

NAACP

The National Association for the Advancement of Colored People, an African-American civil rights organization formed in 1909 to fight prejudice, lynching, and Jim Crow segregation, and to work for the betterment of people of color.

Brown Case

The Brown Case, commonly known as Brown v. Board of Education of Topeka, was a landmark 1954 Supreme Court decision that declared racial segregation in public schools unconstitutional in the United States.

Montgomery Bus Boycott

A pivotal event in the American Civil Rights Movement, starting in 1955, where African Americans boycotted the Montgomery public bus system to protest racial segregation.