If the Marginal Propensity to Consume (MPC) Is 0

question 144

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be

• A) 0.2.
• B) 8.
• C) 4.0.
• D) 5.0.

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Definitions:

Biological Rhythm

Natural cycles in physiological processes or behaviors that align with environmental cues, like day-night cycles or seasonal changes.

Hunger

The physical sensation or condition that indicates the need to consume food for energy.

Lucid

Clear, easily understood, or mentally sound; often used in the context of conscious awareness.

Latent Content

The hidden psychological meaning behind the manifest content (explicit storyline) of dreams, as per Freudian theory.