Assume That the Marginal Propensity to Consume Equals 0

question 106

Multiple Choice

Assume that the marginal propensity to consume equals 0.75 and the marginal propensity to import equals 0.10.By how much does spending on domestic goods increase if income increases by $300?

• A)$195
• B)$225
• C)$30
• D)$300
• E)$75

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Definitions:

NMDA Receptors

Protein complexes in the nervous system that play a key role in synaptic plasticity and memory formation by acting as a receptor for glutamate, an important neurotransmitter.

Postsynaptic

Referring to the region of a neuron that receives and responds to neurotransmitters released from another neuron at a synapse.

AMPA Receptors

Ionotropic receptors in the brain that mediate fast synaptic transmission in the central nervous system, crucial for brain functions such as learning and memory.

Nerve Growth Factor

A protein essential for the growth and survival of certain neurons, playing a critical role in the development and maintenance of the nervous system.