-Using the Data in Above Table, the Marginal Propensity to

question 279

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable } \\\text { income } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure (dollars) }\end{array} \\\hline 100 & 225 \\\hline 200 & 300 \\\hline 300 & 375 \\\hline 400 & 450 \\\hline 500 & 525 \\\hline 600 & 600 \\\hline\end{array}$$
-Using the data in above table, the marginal propensity to consume is

• A) equal to 1.0 when disposable income equals $600.
• B) constant at 0.75.
• C) increasing as disposable income increases.
• D) constant at 0.25.

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Definitions:

Gender

A concept created by society that describes the expected roles, actions, norms, and identities deemed suitable for males, females, and other gender identities.

Profile Plot

A graphical representation of the interaction effects between variables, often used to visualize how profiles change across different conditions or groups.

Interaction Effect

In statistics, a situation where the effect of one independent variable on the dependent variable differs depending on the level of another independent variable.

Profile Plots

Graphical displays of the estimated values across different factors or conditions, often used to assess interactions in multivariate data.