If the Marginal Propensity to Consume Is 0

question 112

Multiple Choice

If the marginal propensity to consume is 0.85,how much is the spending multiplier?

• A) 0.15
• B) 1.17
• C) 5.1
• D) 6.67

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Definitions:

Buyer

A person or entity that purchases goods or services for personal use, resale, or as part of industrial processes.

Influencer

An individual with the power to affect the purchasing decisions of others due to their authority, knowledge, position, or relationship with their audience.

User

An individual or entity that utilizes a product, service, or system.

Risky Shift

is a phenomenon where a group collectively agrees on a course of action that is more extreme than they would have decided individually.