If Consumption Increases by $75 Billion When Disposable Personal Income

question 60

True/False

If consumption increases by $75 billion when disposable personal income increases by $100, the marginal propensity to consume is 0.75.

---

Definitions:

College Students

Individuals enrolled in an institution of higher education aiming to achieve degrees or certifications.

External Validity

The capacity for the conclusions of a study to be relevant in other circumstances and among different groups of people.

Stereotypical Assumption

A generalized and oversimplified belief about a particular group or type of individuals.

Laundry Soap

A cleaning agent, specifically designed for washing clothes, that helps remove dirt and stains.