Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 193

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000. What is the marginal propensity to consume?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

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Definitions:

Source Traits

Fundamental personality attributes identified by Raymond Cattell that underlie and give rise to surface behaviors.

Ergs

A unit of energy in the centimeter-gram-second (CGS) system, used to measure the amount of work or energy.

Proprium

Encompasses all aspects of an individual's self or identity as defined by psychologist Gordon Allport.

Self

The individual's perception of their identity, including traits, beliefs, and personal history, forming the basis of one's personality and self-concept.