Suppose the MPC in an Economy Is 0

question 85

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:

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Early life experiences or behaviours that indicate or lead to certain outcomes in adulthood.

Motor Function

Refers to the physiological capability and processes that enable the movement and coordination of the body and its parts.

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A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by delusions, hallucinations, and disordered thinking.

Inner City

Urban areas close to the downtown or central business district, often characterized by high-density living and sometimes socio-economic challenges.