If Disposable Income Increases from $9,000 Billion to $11,000 Billion,and

question 116

Multiple Choice

If disposable income increases from $9,000 billion to $11,000 billion,and consumption increases from $9,500 billion to $11,000 billion,the MPC must be

• A)0.75.
• B)1.00.
• C)0.90.
• D)0.25.

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Definitions:

Proportion

A portion, fraction, or quantity that is seen in contrast to the entire entity.

Equilibrium

A condition or state where all acting influences are balanced, particularly in a market when supply equals demand.

Penalty Kick

A penalty kick in economics might refer metaphorically to an opportunity to score or gain significantly with little opposition, though it's primarily a sports term.

Probability of Success

A quantitative measure expressing the likelihood of achieving a specified outcome or reaching a goal.