Assume That Marginal Propensity to Consume Is 0

question 106

Multiple Choice

Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. The tax multiplier is:

• A)exactly 0.8.
• B)impossible to determine.
• C)greater than 5.
• D)less than 5.

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Definitions:

Contingency Factors

External or internal variables that can influence the effectiveness of organizational strategies or leadership styles, depending on the specific situation.

Motivational Practice

Techniques or strategies used by organizations or individuals to enhance motivation towards achieving certain goals.

Desired

Something that is longed for or wanted; can pertain to goals, outcomes, or properties sought in various contexts.

Motivational Practices

Strategies or actions taken to encourage and boost the motivation levels of individuals or groups.