If the Marginal Propensity to Consume Is Equal to 0

question 83

Multiple Choice

If the marginal propensity to consume is equal to 0.70 and income rises by $20 billion,then consumption spending will rise by

• A)$ 6 billion
• B)$14 billion
• C)$20 billion
• D)$28 billion
• E)$67 billion

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Definitions:

Relational Transparency

A leadership behavior characterized by being open, honest, and candid in relations with others.

Servant Leadership

A leadership philosophy which emphasizes the leader's role as serving the needs of others first.

Kohlberg's Model

A theory outlining six stages of moral development, progressing from obedience and punishment orientation to principled conscience.

Formal Reward System

An institutionalized and structured program within an organization designed to recognize and reward employee performance.