If Consumption Increases by $75 Billion When Disposable Personal Income

question 60

True/False

If consumption increases by $75 billion when disposable personal income increases by $100, the marginal propensity to consume is 0.75.

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Definitions:

Financing Activities

Financial transactions that involve raising capital and repaying investors, such as issuing equity, securing loans, or paying dividends, which impact a company's cash flow.

Business Activities

Various processes and tasks undertaken by businesses, including operations, marketing, management, and financial transactions.

Investing

The process of distributing funds with the aim of earning a return or profit.