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

Understand the mechanisms and calculations involved in futures contracts for various commodities and financial instruments.

Identify the factors that influence the pricing and valuation of futures contracts.

Calculate profits and losses in futures trading given changes in market prices.

Recognize the purpose and function of options contracts and how they differ from futures contracts.

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Definitions:

Circadian Rhythm

An internal biological clock that regulates the sleep-wake cycle over a roughly 24-hour period.

Dissociation

describes a psychological state in which a person disconnects from their thoughts, feelings, memories, or sense of identity, often as a response to traumatic events.

Restorative Theory

A theory suggesting that sleep is necessary for the body and mind to repair and rejuvenate from the day's activities and stresses.

Consolidation

A process where immediate memories become lasting memories when new neural connections are created and prior neural connections get stronger.