If the Multiplier Is 2, the Marginal Propensity to Consume

question 120

Multiple Choice

If the multiplier is 2, the marginal propensity to consume (MPC) must be

• A) 0.25.
• B) 0.4.
• C) 0.5.
• D) 1.

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Definitions:

Pulmonary

Related to the lungs or the respiratory system.

Endocrine

Pertains to the system of glands that release hormones directly into the bloodstream to regulate bodily functions.

Respiratory

Pertaining to the process of inhaling oxygen and exhaling carbon dioxide from the body.

Somatic Nervous System

The body system consisting of the sensory nerves, whose function is to convey information from the skin and muscles to the central nervous system about conditions such as pain and temperature, and the motor nerves, whose function is to tell muscles what to do.