Suppose Consumption Increases by $250 Million When Income Increases by $300

question 113

Multiple Choice

Suppose consumption increases by $250 million when income increases by $300. What is the marginal propensity to consume?

• A)0.833
• B)83.3
• C)250
• D)50
• E)None of these

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Definitions:

Collectivist Cultures

Cultures that emphasize group over individual. The focus is on the interconnectedness of individuals, particularly the interdependent nature of their social relationships and identities.

Individualist Cultures

Cultures that emphasize the individual and value individual achievement.

Societal Role Expectations

The anticipated behaviors and responsibilities assigned to individuals based on their social position or status within a society.

Role Identities

The conceptions held by individuals about who they are in specific roles within their social networks or groups.