Suppose Saving Is $1,000 When Income Is $10,000 and the MPC

question 129

Multiple Choice

Suppose saving is $1,000 when income is $10,000 and the MPC equals 0.9. When income increases to $15,000, saving is

• A) $1,500.
• B) $1,400.
• C) $900.
• D) $500.

Construct truth tables for symbolic statements.

Prove logical claims about conjunctions, conditionals, and set consistency.

Understand the implications of conditionals and their structural components.

Translate complex logical relations into symbolic notation accurately.

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Definitions:

Component

A component or segment of a more extensive whole, particularly a section of machinery or a system.

Consequent

In a conditional statement, it refers to the outcome or result that follows from the fulfillment of a precedent condition.

Conditional

A type of logical statement that connects two statements in a cause-and-effect relationship, usually formulated as "if-then."

Biconditional

A logical statement indicating a true conditional statement and its converse are true; often represented by the phrase "if and only if".