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:

Negritude

A cultural movement begun in the 1930s by French-speaking black intellectuals, celebrating black culture and heritage.

Southern Theory

An approach in sociology that highlights the importance of perspectives, theories, and insights from the Global South in understanding global social dynamics.

Western World

Refers to societies and nations, primarily in Europe and the Americas, characterized by democratic forms of government, capitalist economies, and Christian cultural influences.

White Social Capital

The benefits and resources accrued by individuals through their membership in predominantly white social networks or communities.