Autonomous Spending Rises by $10 Billion and Real GDP Rises

question 136

Multiple Choice

Autonomous spending rises by $10 billion and Real GDP rises by $50 billion.What does the marginal propensity to save equal?

• A) 0.10
• B) 0.20
• C) 0.80
• D) 0.90
• E) 0.50

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be prevented from using them and one person's use does not reduce availability for others.

Commons Dilemma

A situation in which individuals' short-term self-interest conflicts with long-term group interest and well-being, typically regarding the overconsumption of a shared resource.

Scarce Resources

Goods or services that are limited in availability relative to the desires or needs of individuals or systems.

Competition

A situation where two or more parties strive for a goal that cannot be shared, such as a higher rank or prize.