If the Marginal Propensity to Consume in Your Classmate's Nation

question 110

Multiple Choice

If the marginal propensity to consume in your classmate's nation is 3/5 and the marginal propensity to save in your country is 1/10,which of the following must be true?

• A)The spending multiplier is larger in your classmate's nation than in your country.
• B)The spending multiplier is smaller in your classmate's nation than in your country.
• C)Autonomous consumption is higher in your classmate's nation than in your country.
• D)Autonomous consumption is lower in your classmate's nation than in your country.
• E)Total consumption is lower in your classmate's nation than in your country.

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Definitions:

Public Agreement

A consensus or concurrence of opinion among the general public or within a specific group of people.

Ethical Intensity

Ethical Intensity refers to the perceived importance or significance of an ethical issue, determined by its potential outcomes and the degree of impact on stakeholders.

Ethics-Based Principles

Moral guidelines that govern the behavior and decision-making of individuals or organizations.

Determination of Rights

The process of legally establishing or affirming individuals' entitlements or privileges under the law.