Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 103

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to consume?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

---

Definitions:

Daily Drinking

The habitual consumption of alcoholic beverages on a daily basis.

CNS Dysfunction

Impairment or disorder affecting the central nervous system, leading to various neurological symptoms or deficits.

Cerebral Cortex

The outer layer of the brain, involved in various high-level functions such as thought, memory, emotion, and sensory perception.

Demyelination

The process involving loss or damage to the myelin sheath that surrounds nerve fibers, impairing nerve signal transmission.