If the Marginal Propensity to Save Is 0

question 72

Multiple Choice

If the marginal propensity to save is 0.1 and government spending is raised by $5 billion,then total aggregate spending will rise by:

• A) $500 million.
• B) $5 billion.
• C) $10 billion.
• D) $50 billion.

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Definitions:

Independent Variable

The factor that is predicted to cause change.

Marriage Counseling

A form of therapy that addresses marital problems and conflicts by helping spouses improve communication and resolve issues.

Divorce

Divorce is the legal dissolution of a marriage by a court or other competent body, officially ending a marital union and severing marital bonds between a couple.

Existing Sources

Refers to previously developed materials, data, or research findings that are used to support new studies or hypotheses.