If the Marginal Propensity to Consume Is 0

question 28

Multiple Choice

If the marginal propensity to consume is 0.9, then the government spending multiplier is:

• A)0.1.
• B)1.11.
• C)9.
• D)10.

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Definitions:

Unconscious

The part of the mind that contains thoughts, memories, and desires not within current conscious awareness but can influence behavior.

Psychosexual Stage

In Freudian psychology, one of the developmental stages (oral, anal, phallic, latency, genital) through which a child's personality forms as they experience sexual pleasures from specific body areas and caregivers interfere or do not interfere with these pleasures.

Fixation

An obsessive interest or attachment to someone or something that can interfere with normal psychological development or functioning.

Excessive Gratification

The act of satisfying desires or indulging to an excessive degree, often leading to negative consequences or addiction.