If the Marginal Propensity to Consume Is 0

question 134

Multiple Choice

If the marginal propensity to consume is 0.9 in a private closed economy, a $20 billion decline in investment spending will decrease

• A)GDP by $20 billion.
• B)GDP by $100 billion.
• C)saving by $20 billion.
• D)consumption by $200 billion.

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Definitions:

Criterion-Related Validity

The extent to which a selection tool predicts, or significantly correlates with, important elements of work behaviour

Performance Review

A formal assessment in which the performance of an employee is documented and evaluated, typically on a regular basis, such as annually.

Personality Tests

Personality tests are assessments designed to evaluate an individual's character traits, behaviors, and emotional patterns to predict their suitability for various roles or to understand their personality.

Dispositional Characteristics

Traits or aspects of an individual's personality that are inherent and influence behavior in various situations.