If the Marginal Propensity to Save Equals 0

question 27

True/False

If the marginal propensity to save equals 0.2 and the marginal propensity to import equals 0.3,an autonomous decrease in investment spending of $1 million leads to a $2 million decrease in domestic income and a $600,000 decrease in imports.

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Definitions:

Obsessions

Recurrent and persistent thoughts, urges, or images that are experienced as intrusive and unwanted, causing significant anxiety or distress.

Compulsions

Compulsions are repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, or according to rules that must be applied rigidly, aimed at preventing or reducing distress or a dreaded event or situation.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within a month after exposure to a traumatic event.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a severely traumatic event, characterized by flashbacks, nightmares, and severe anxiety.