If Your Marginal Propensity to Consume Is 0

question 125

Multiple Choice

If your marginal propensity to consume is 0.75 and you get an additional $400 in income,you would spend ________ on consumption.

• A) $400.00
• B) $200.00
• C) $533.33
• D) $300.00
• E) $1,600.00

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Definitions:

Problematic Situations

Scenarios or conditions that present challenges or difficulties, requiring resolution or intervention.

Demonstrates

To clearly show the existence or truth of something by giving proof or evidence.

Agendas

Lists or plans of items to be discussed, completed, or addressed during meetings or activities.

Discourage Changes

An approach or policy aimed at maintaining the status quo and preventing alterations or modifications.