If the Marginal Propensity to Consume (MPC)is Equal to 0

question 101

Multiple Choice

If the marginal propensity to consume (MPC) is equal to 0.9,an increase in household income causes desired consumption expenditure to

• A)rise by more than the increase in income.
• B)rise by the full increase in income.
• C)rise by less than the full increase in income.
• D)fall,as an increase in income will increase saving.
• E)remain constant,because the MPC is also constant.

---

Definitions:

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization.

Adaptation

The process by which individuals, species, or groups adjust to changes in their environment, enhancing their survival and functionality.

Human Capital

The collective skills, knowledge, and abilities that employees bring to their workplace, contributing to its value and competitiveness.

Automated Processes

Systems or operations that are performed with minimal human intervention, often using technology.