If the Marginal Propensity to Save Is 0

question 186

Multiple Choice

If the marginal propensity to save is 0.1, then a $10 million decrease in disposable income will

• A)increase consumption by $9 million.
• B)increase consumption by $1 million.
• C)decrease consumption by $9 million.
• D)decrease consumption by $1 million.
• E)leave consumption unchanged.

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Definitions:

Alcohol Use Disorders

Medical conditions characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Substance Use Disorders

Conditions in which the use of one or more substances leads to a clinically significant impairment or distress.

Purging Behaviour

Involves engaging in methods to expel food from the body, commonly associated with eating disorders such as bulimia nervosa.

Diet Soft-drinks

Beverages that are artificially sweetened to offer the taste of their sugar-containing counterparts while providing fewer calories, often promoted as a healthier alternative.