If a Family's Annual Disposable Income Rose from $60 000

question 71

Multiple Choice

If a family's annual disposable income rose from $60 000 to $65 000 and their desired consumption expenditures rose from $50 000 to $54 000,it can be concluded that the family's

• A)marginal propensity to consume is $800.
• B)average propensity to consume is 0.8.
• C)marginal propensity to consume is 0.8.
• D)average propensity to save is 0.8.
• E)marginal propensity to save is 0.8.

---

Definitions:

Liver

A vital organ that performs detoxification, metabolism, and protein synthesis.

Stomach

A muscular organ located in the gastrointestinal tract that plays a key role in digestion by mixing and breaking down food using gastric juices.

Endocrine

Pertaining to the system of glands that release hormones directly into the bloodstream, influencing various bodily functions.

Development

The process of growth and change that organisms undergo over their lifetimes, encompassing physical, cognitive, and social aspects.