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:

Spiny Water Fleas

A type of invasive aquatic crustacean that impacts freshwater food webs and can clog fishing gear and water intake structures.

Zooplankton

Microscopic organisms drifting in oceans, seas, and bodies of fresh water, which serve as a crucial food source for many marine species.

Invasive Species

Non-native organisms that significantly alter or damage the habitats they invade, often outcompeting local species and leading to biodiversity loss.

Habitat Fragmentation

The process by which habitat loss results in the division of large, continuous habitats into smaller, more isolated remnants.