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:

Wikis

Collaborative websites that allow users to add, modify, or delete content directly from the browser.

Guaranteed Privacy

The assurance that an individual's personal information will be protected and kept confidential.

Low Cost

Refers to items or services offered at a price lower than the average market rate.

Immediacy

The sense of closeness and presence that helps to create a connection between communicator and audience.