If the Marginal Propensity to Consume Is 0

question 133

Multiple Choice

If the marginal propensity to consume is 0.9, by how much will $100 of government spending increase GDP?

• A) $90
• B) $100
• C) $1,000
• D) $900

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Definitions:

Golgi Tendon Reflex

A protective reflex mechanism through which the tension in a muscle tendon is regulated, preventing potential damage from excessive force.

Crossed Extensor Reflex

A reflex action in which the extension of one limb is paired with the flexion of the contralateral limb.

Common Fibular Nerve

A branch of the sciatic nerve that innervates the muscles of the lower leg, contributing to foot and toe movement and sensation.

Medial Plantar Nerves

Nerves that supply sensation and muscle control to the medial part of the bottom of the foot.