If the Marginal Propensity to Consume Is 0

question 90

Multiple Choice

If the marginal propensity to consume is 0.1, then the tax multiplier is:

• A)exactly 0.1.
• B)more than 10.
• C)less than 10.
• D)exactly 10.

---

Definitions:

Sellers

Individuals or entities that offer goods or services for sale in the market.

Common Resources

Natural or man-made resources that are not owned by anyone, cannot exclude others from using, and are susceptible to overuse and depletion.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing availability to others.

Not Excludable

A characteristic of a good or service where it is difficult or impossible to prevent individuals from enjoying its benefits, even if they do not pay for it.