If the Marginal Propensity to Consume (MPC) Is 0

question 52

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:

• A) 0.
• B) 1.
• C) 4.
• D) 5.

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Definitions:

Subcooling

Term used to describe the additional cooling of A/C refrigerant in the bottom of the condenser after it has changed from vapor to liquid below its freeze point. In physics, this is known as supercooling.

A/C System

A system in vehicles and buildings designed to cool the air, improving comfort for occupants.

Low Pressure

Refers to situations where the pressure within a system or component is below the normal operating level, potentially indicating a problem.

High Pressure

Pertains to a condition where the pressure in a system or container is significantly above atmospheric pressure, often used in hydraulic or pneumatic systems.