If the Marginal Propensity to Consume (MPC) Is 0

question 39

Multiple Choice

If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:

• A) 25.
• B) 40.
• C) 96.
• D) 100.

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Definitions:

Proprioceptors

Sensory receptors located in muscles, tendons, and joints, responsible for sensing body position and movement.

Memory Failure

The inability to recall or recognize information that was previously encoded into the brain's memory.

Fight-or-Flight

A physiological response to perceived harmful events or threats, preparing the body to either confront or avoid the danger.

Tympanic Membrane

A thin layer of tissue in the ear, also known as the eardrum, that vibrates in response to sound waves and transmits these vibrations to the ossicles within the middle ear.