If the Marginal Propensity to Consume (MPC) Equals 0

question 20

Multiple Choice

If the marginal propensity to consume (MPC) equals 0.75 (3/4) and the multiplier equals 2.0, the marginal propensity to import (MPM) must equal

• A)0.25
• B)0.50
• C)0.75
• D)1.00
• E)1.25

---

Definitions:

Property Rights

The legal rights to use, control, and derive benefit from property, whether it is tangible or intangible.

Privately Owned

Something that is owned by individuals or corporations rather than the government or the public.

Pollution Liability

Legal responsibility for damages caused by releasing pollutants into the environment.

Pollution Emissions

The release of pollutants into the environment, typically from industrial activity, transportation, and other sources harmful to human health and the planet.