The Sum of the Marginal Propensity to Consume and the Marginal

question 185

Multiple Choice

The sum of the marginal propensity to consume and the marginal propensity to save is always equal to

• A)zero.
• B)0.5.
• C)1.
• D)100.

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Definitions:

Tax

A mandatory monetary fee or tax levied by the government on people or organizations to support government spending.

Per Unit Tax

A tax that is levied on a per unit basis, typically imposed on specific goods or services.

Price Increase

A rise in the cost of goods or services.

Tax Revenue

The money collected by governments through the process of taxation.