If the Marginal Propensity to Consume Is 0

question 182

True/False

If the marginal propensity to consume is 0.8 and government transfers decrease by $30 billion, real GDP will decrease by less than $150 billion.

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Definitions:

Sociologists

Sociologists are social scientists who study human societies, behaviors, and interactions to understand social patterns and institutions.

Social Forces

Complex societal factors that influence the behaviors, attitudes, and actions of individuals and groups within a society.

Population Growth

The increase in the number of individuals in a population, influenced by factors such as birth rates, death rates, and migration patterns.

Natural Laws

Fundamental moral principles regarded as a basis for all human conduct, often thought to be inherent and universal.