Suppose Consumption Is $5,000 When Income Is $8,000 and the MPC

question 51

Multiple Choice

Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9. When income increases to $10,000, consumption is

• A) $2,700.
• B) $4,500.
• C) $6,800.
• D) $7,200.

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Definitions:

Insider Trading

The unethical and often illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Tender Offer

A public proposal by an individual or entity to buy shares of a corporation from its shareholders at a specified price for a certain period of time.

Market Price of the Shares

The current price at which a share of stock is bought or sold on the market.

Section 5

Often associated with specific legal documents or statutes, such as the Federal Trade Commission Act, where it prohibits unfair or deceptive business practices.