If Consumption Is $1,230 When Disposable Income Is $1,420,and Consumption

question 122

Multiple Choice

If consumption is $1,230 when disposable income is $1,420,and consumption is $1,400 when disposable income is $1,620,then the marginal propensity to consume (MPC) is

• A) 1.15.
• B) 0.15.
• C) 6.67.
• D) 0.85.

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Definitions:

Semifluid Medium

A substance that has properties between solid and liquid states, often used in biological and chemical applications for cultures or reactions.

Chromatin

A complex of DNA and proteins found in the nucleus of cells that condenses to form chromosomes during cell division.

Household Liquid

Any fluid substance commonly found or used within a living residence, such as cleaning solutions or drinks.

Ammonium Hydroxide

A solution of ammonia in water, used as a cleaning agent and in the manufacture of fertilizers.