Scenario 10

question 43

Multiple Choice

Scenario 10.1 Imagine an economy that does not have international trade and is originally in equilibrium.Then the government increases the level of spending by $350 million because it received a gift from abroad.In this economy, only 65 cents of every dollar is spent, and the rest is saved.
Refer to Scenario 10.1.What is the marginal propensity to save for this economy?

• A)0.5
• B)0.25
• C)0.65
• D)0.35
• E)Cannot be determined

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Definitions:

Hybrid Atomic Orbitals

A concept in chemistry where atomic orbitals mix to form new, hybrid orbitals that are used to describe the bonding in molecules.

C-C π Bond

A C-C π bond is a type of covalent bond formed from the sideways overlap of p-orbitals, allowing for electron sharing between carbon atoms in double or triple bonds.

Carbon-Carbon Bonds

The covalent bond between two carbon atoms in a molecule, forming the backbone of organic compounds.

π Bond

A type of covalent bond between atoms that results from the sideways overlap of p orbitals, allowing for electron sharing.