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:

Corporations

Legal entities that are separate and distinct from their owners, capable of owning assets, incurring liabilities, and engaging in business activities.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Depression

A severe and prolonged downturn in economic activity, marked by significant declines in income, employment, and production, often more severe than a recession.

Gross Investment

The total amount spent on purchasing or constructing new capital goods over a specific time period, without accounting for depreciation.