If the Marginal Propensity to Consume Is 0

question 196

Multiple Choice

If the marginal propensity to consume is 0.6 and investment spending declines by $50 billion,by how much will equilibrium output change?

• A) -$125 billion
• B) -$83.3 billion
• C) -$50 billion
• D) $83.3 billion
• E) $125 billion

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Definitions:

Correlation Coefficients

Statistical measures that quantify the direction and strength of the relationship between two variables.

Predictions

Forecasts or projections about future events, based on data, trends, or often statistical and analytical reasoning.

Sleeplessness

The condition of being unable to sleep, also known as insomnia, which can lead to fatigue and other health problems.

Probability

A measure of the likelihood of a specific event or outcome occurring, expressed as a ratio between 0 and 1.