If the Marginal Propensity to Consume Is 0

question 125

Multiple Choice

If the marginal propensity to consume is 0.75, the multiplier for taxes and transfer payments is:

• A)less than 4.
• B)equal to 4.
• C)greater than 4.
• D)equal to 0.75.

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Definitions:

Distress

Emotional strain or suffering characterized by feelings of anxiety, sorrow, or pain.

Voices

Auditory hallucinations often experienced in conditions such as schizophrenia.

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The competitive sport involving the racing of automobiles on a track or closed circuit.

Abnormality

A deviation from the norm or average, often used in a clinical context to describe behaviors, feelings, or thoughts that are considered significantly different from societal standards.