Table 13-2 -Refer to Table 13-2. Consider a Simple Economy That Is

question 129

Multiple Choice

Table 13-2

-Refer to Table 13-2. Consider a simple economy that is made up of only two sectors, households and firms, and that all investment is autonomous. Further, disposable personal income = real GDP and the economy is currently producing at its level of potential real GDP. What is the marginal propensity to consume in this economy?

• A) 0.5
• B) 0.6
• C) 0.75
• D) 0.8

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Definitions:

Epigenetics

The study of changes in organisms caused by modification of gene expression rather than alteration of the genetic code itself.

Gene Expression

The process by which the instructions in our DNA are converted into a functional product, such as a protein.

Genetics

The branch of biology concerned with the study of genes, genetic variation, and heredity in organisms.

Lemon Juice Test

A psychological test used to measure introversion and extroversion based on the saliva production in response to tasting lemon juice.