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

question 384

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) 0.2.
• B) 0.8.
• C) 0.3.
• D) 0.18.

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Definitions:

Intoxicated

A state of being affected by substances such as alcohol or drugs, which impair cognitive functions and physical abilities, leading to reduced control and judgment.

Unconscionability

A condition in which a contract or a clause within the contract is deemed unjust or extremely one-sided in favor of the party with more power.

Fraud

Deceptive action intended to result in financial or personal gain or to cause harm to another party.

Mistake

An erroneous belief, at the time a contract is concluded, about certain facts or laws that may affect the contract's validity.