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:

Profound Intellectual Disability

A level of intellectual disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, originating before the age of 18.

Moderate Intellectual Disability

Characterized by significantly subaverage intellectual functioning and limitations in adaptive behavior, with IQ levels ranging from 35 to 49.

Vocational Skills

Practical abilities and know-how related to specific trades or professions, acquired through training and experience.

Autism Spectrum Disorder

A range of neurodevelopmental disorders characterized by social deficits, communication difficulties, and restricted, repetitive, and stereotyped patterns of behavior.