Suppose That the Marginal Propensity to Consume Out of Disposable

question 18

Multiple Choice

Suppose that the marginal propensity to consume out of disposable income is 0.6 and the marginal propensity to import is 0.14.If the net tax rate is 0.1,then what is the marginal propensity to spend in this economy?

• A)0.30
• B)0.40
• C)0.46
• D)0.50
• E)0.60

---

Definitions:

Politics

The practice and theory of influencing people on a global, national, or individual level, focusing on the distribution of power and resources.

Visual-Spatial Ability

The capacity to understand, reason, and remember the spatial relations among objects or space, crucial for solving problems in areas like science, engineering, and mathematics.

Mathematical Abilities

Mathematical abilities refer to the capacity to perform and understand various mathematical concepts, operations, and problem-solving techniques.

Verbal Skills

The ability to communicate effectively using language, including speaking, listening, reading, and writing.