Suppose the MPC in an Economy Is 0

question 147

Multiple Choice

Suppose the MPC in an economy is 0.9.The APC is initially 0.95 and disposable income is $4 billion.If disposable income increases to $14 billion,what is the new level of consumption?

• A)$13.3 billion.
• B)$12.8 billion.
• C)$9 billion.
• D)$12.6 billion.

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Definitions:

Siblings

Brothers, sisters, or any individuals sharing at least one parent.

Checking Account Balance

The total amount of money available in a checking account at any given moment.

Confidence Interval

A range of values, derived from the sample statistics, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A statistical metric that captures the dispersion of a dataset relative to its mean, indicating how spread out the data points are.