If the Marginal Propensity to Consume Is 0

question 174

Multiple Choice

If the marginal propensity to consume is 0.75,the marginal propensity to save is

• A)0.25.
• B)0.5.
• C)1.
• D)3.

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Definitions:

Advertisements

Notices, visuals, or audio messages intended to promote or sell a product, service, or idea through various media channels.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to measure the relative value of different currencies.

Globalization

Refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders.

Big Mac Index

An informal measure of purchasing power parity between two currencies, comparing the price of a Big Mac in different countries.