If the Marginal Propensity to Consume for a Nation Is

question 116

Multiple Choice

If the marginal propensity to consume for a nation is 0.8, it means:

• A) consumers save 80% of their incomes.
• B) consumers spend 80% of their incomes.
• C) consumers pay 20% tax on their earnings.
• D) consumers decrease their spending by $0.80 for each $1 of a decrease in their income.

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Definitions:

Containment

A geopolitical strategy aimed at preventing the expansion of a hostile power or ideology, notably used by the United States during the Cold War.

Demilitarized Zone

A region or area that has been agreed upon by opposing military forces not to conduct any military activities or maintain military installations.

Ayn Rand

was a Russian-American writer and philosopher known for developing a philosophical system called Objectivism and for her novels "The Fountainhead" and "Atlas Shrugged."

Josef Stalin

Soviet political leader who governed the Soviet Union from the mid-1920s until his death in 1953, known for his totalitarian rule.