If an Increase in Disposable Income Causes Consumption to Increase

question 73

Multiple Choice

If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $2,000 to $4,000,it can be inferred that the MPC equals

• A)0.4.
• B)0.6.
• C)0.5.
• D)0.75.

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Definitions:

New Deal Coalition

An alliance of interest groups and voting blocs in the United States that supported the New Deal and the Democratic Party during the presidency of Franklin D. Roosevelt.

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Part of political or social organizations in the Southern United States that advocated for or practiced racial segregation, particularly during and after the era of Jim Crow laws.

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Large meetings where political parties nominate their presidential and vice-presidential candidates, adopt a platform, and unify party members ahead of a national election.

Televised Spectacle

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