If the Marginal Propensity to Save in a Closed Economy

question 165

Multiple Choice

If the marginal propensity to save in a closed economy is .25 and a lump-sum tax is imposed,the slope of the economy's aggregate expenditures schedule will be:

• A) .25.
• B) less than the slope before the tax.
• C) greater than the slope before the tax.
• D) .75.

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Definitions:

Democratic Ethos

The set of beliefs and values that emphasizes the importance of participation in the democratic process, equality, and the welfare of the community.

Popular Self-Government

A form of government based on the principle that the authority of the government is created and sustained by the consent of its people, through their elected representatives.

Shawnee Chief

A leader among the Shawnee people, a Native American tribe historically located in the northeastern and midwestern United States.

Tecumseh

A Native American leader of the Shawnee who worked to unite Native American tribes against American expansion in the early 19th century.