If the Marginal Propensity to Consume Is 0

question 20

Multiple Choice

If the marginal propensity to consume is 0.8 and there no income taxes or imports, the multiplier for a change in autonomous expenditure equals

• A) 0.8.
• B) 1.0
• C) 4.0.
• D) 5.0.

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Definitions:

Grey and White Matter

Two distinct types of central nervous system tissue; grey matter contains neural cell bodies, and white matter contains nerve fibers (axons) that connect different parts of grey matter.

Arthur Jensen

A controversial American psychologist known for his work on intelligence and his argument about racial differences in IQ.

Ethnic Differences

Variations or disparities among ethnic groups in aspects like culture, language, and social structures.

Ethnic Differences

Variations in genetics, culture, tradition, language, and social structure among ethnic groups.