If Autonomous Consumption Rises by $60 And,as a Result,Real GDP

question 20

Multiple Choice

If autonomous consumption rises by $60 and,as a result,Real GDP rises by $240,then the marginal propensity to consume is

• A)0.25.
• B)0.75.
• C)0.05.
• D)0.95.
• E)none of the above

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Definitions:

Endorphins

Natural, pain-killing substances produced by the body that also contribute to feelings of pleasure and well-being.

Natural Opiates

Are substances derived from the opium poppy plant that have pain-relieving properties, such as morphine and codeine.

Vestibular Sense

Sense that provides information about balance and movement.

Kinesthetic Sense

A sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.