If the Marginal Propensity to Consume Is 0

question 97

True/False

If the marginal propensity to consume is 0.8 and government purchases of goods and services decrease by $30 billion, real GDP will decrease by $24 billion.

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Definitions:

Cotton Gin

A machine invented by Eli Whitney in 1793 that quickly and efficiently removed seeds from cotton fibers, revolutionizing the cotton industry and significantly impacting the institution of slavery in the United States.

Slave Labor

Work done under force without proper remuneration, often under extremely harsh conditions, primarily referred to in the context of African slaves in the Americas during the colonial and antebellum periods.

Eli Whitney

Known for inventing the cotton gin, a pivotal invention in the history of agriculture and the economy of the United States.

Slaveholders

Individuals or entities that owned slaves.