If Consumption Expenditures for a Household Increase from $1000 to $1800

question 179

Multiple Choice

If consumption expenditures for a household increase from $1000 to $1800 when disposable income rises from $1000 to $2000, the marginal propensity to consume is

• A) 0.18.
• B) 0.3.
• C) 0.2.
• D) 0.8.

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Definitions:

Viral Infections

Illnesses caused by viruses, tiny infectious agents that can replicate only inside the living cells of an organism.

Stress Hormones

Hormones that are released in the body in response to stress, primarily cortisol and adrenaline, affecting various physiological responses.

Lymphocytes

Lymphocytes are a type of white blood cell crucial to the immune system, playing a pivotal role in defending the body against infections and diseases.

Bacterial Infections

Diseases caused by bacteria that can lead to a range of symptoms, from mild to life-threatening, affecting various parts of the body.