If the Marginal Propensity to Consume Is 0

question 262

True/False

If the marginal propensity to consume is 0.8, the multiplier for taxes and transfer payments will be more than 5.

---

Definitions:

Reward Power

A form of power based on the ability to distribute rewards that others view as valuable, often used in organizational contexts.

Small Informal Groups

Collectives of individuals who come together spontaneously or for a specific purpose without a formal structure.

Propinquity

The proximity or physical closeness between people, which can affect their likelihood to form relationships or connections.

Reference Groups

Groups that individuals compare themselves to for self-evaluation or as a source of personal standards.