If the Marginal Propensity to Consume Is 0

question 229

Multiple Choice

If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases

• A) saving by $0.20.
• B) consumption expenditure by $8.00.
• C) consumption expenditure by $0.80.
• D) consumption expenditure by $18.00.

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Definitions:

Headwaters

Headwaters are the source or uppermost reaches of a river or stream, often located in high elevation areas or mountainous regions.

Fast Flow

Refers to rapid movement of liquids, gases, or other substances, often observed in natural processes and engineered systems.

High Oxygen

Refers to environments or conditions where the concentration of oxygen is above the normal atmospheric level, influencing various biological processes.

Vegetation Layers

The different horizontal layers found within an ecosystem, each housing distinct plant and animal species adapted to their specific environment.