If the Marginal Propensity to Consume Is Equal to 0

question 22

Multiple Choice

If the marginal propensity to consume is equal to 0.75,the spending multiplier is equal to

• A) 4.0.
• B) 1.75.
• C) 0.25.
• D) 0.57.
• E) 1.33.

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Definitions:

Land Animal

An organism that lives primarily or exclusively on land rather than in water or air.

Decay Rate

The rate at which radioactive substances lose their activity over time, leading to the decrease in the number of radioactive atoms present.

Radioactive

Having the property of emitting ionizing radiation or particles as a result of nuclear decay.

Radiometric Dating

Radiometric dating is a technique that allows geologists to estimate the precise ages at which one geological formation ends and another begins.