If an Initial Increase in Government Spending of $100 Billion

question 117

Multiple Choice

If an initial increase in government spending of $100 billion leads to a total increase of $400 billion in income,the marginal propensity to consume in the economy is:

• A) 0.4.
• B) -0.8.
• C) 0.5.
• D) 0.75.
• E) 0.8.

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Definitions:

Workaholism

The compulsion to work excessively and an inability to detach from work, impacting personal health and social relationships.

Unpredictable Economy

Describes an economic condition characterized by uncertainty and potential volatility, affecting financial stability and planning.

Service Industries

Sectors of the economy that provide intangible goods or services to consumers, including healthcare, education, and hospitality.

Workplace Diversity

The inclusion of individuals with varying characteristics such as ethnicity, gender, age, sexual orientation, and disabilities within a professional setting.