If the Marginal Propensity to Consume Is 0

question 144

Multiple Choice

If the marginal propensity to consume is 0.6,what is the long-run expenditure multiplier?

• A) 0.0
• B) 2.0
• C) 2.5
• D) 10.0
• E) 1.0

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Definitions:

American Intention

Refers to the underlying goals or motives behind the United States' actions or policies domestically or internationally.

Declaration of War

A formal declaration by a government that authorizes military conflict and states a state of war exists, historically used to signify the start of hostilities between entities.

President Roosevelt's Diplomatic Style

Characterized by "Big Stick" diplomacy, emphasizing negotiation backed by the threat of force, used by Theodore Roosevelt.

Central America

A geographic region in the Americas bordered by Mexico to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west.