If the Marginal Propensity to Save in a Closed Economy

question 65

Multiple Choice

If the marginal propensity to save in a closed economy is 0.25 and a lump-sum tax is imposed, the slope of the economy's aggregate expenditures schedule will be:

• A).25.
• B)less than the slope before the imposition of the tax.
• C)greater than the slope before the imposition of the tax.
• D).75.

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Definitions:

Blended Families

Family units formed by the merging of two previously separate families into one, often involving parents with children from previous relationships.

Challenges

Difficulties or obstacles that require a solution or response, often serving as opportunities for growth or learning.

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The process or state of being excluded and not accepted by one's contemporaries or peers.

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Consequences or outcomes that result from a specific cause or action.