Under What Conditions Would the APC Equal the MPC at All

question 111

Multiple Choice

Under what conditions would the APC equal the MPC at all levels of disposable income?

• A)When autonomous consumption equals 0.
• B)When there is saving at very high levels of disposable income.
• C)When disposable income is greater than consumption.
• D)When the aggregate expenditure line is horizontal.

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Definitions:

Abstract Sense

Pertaining to concepts that are not concrete or tangible but can be understood intellectually or emotionally.

Authoritative Parenting

A parenting style characterized by a high level of demand and responsiveness, where parents set clear standards and limits but are also supportive and responsive to their children's needs.

Permissive

Describing an approach or policy that allows or tolerates behaviors that might be disallowed or controlled in other contexts; often used in reference to parenting or governance styles.

Authoritarian

A leadership or parenting style characterized by strict rules, high demands, and little warmth or feedback given to subordinates or children.