If the Marginal Propensity to Save Is 0

question 363

Multiple Choice

If the marginal propensity to save is 0.25, investment spending is $600 million, and the government increases its transfers by $100 million, then real GDP increases by:

• A)$25 million.
• B)$150 million.
• C)$300 million.
• D)$1,800 million.

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Definitions:

Society's Need

The demands or requirements that are essential for the well-being, functioning, and stability of a society.

Authentic Leadership

A leadership style characterized by the leader's genuine self-expression, transparency, and consistency, aimed at fostering trust and respect from followers.

Psychological Capacities

The mental abilities and processes related to understanding, adapting to, and navigating one's environment, including emotional intelligence, resilience, and cognitive functions.

Authentic Leadership

A leadership style that emphasizes being genuine and transparent in one’s leadership role, encouraging trust and integrity.