If the Marginal Propensity to Consume (MPC)is Equal to 0

question 101

Multiple Choice

If the marginal propensity to consume (MPC) is equal to 0.9,an increase in household income causes desired consumption expenditure to

• A)rise by more than the increase in income.
• B)rise by the full increase in income.
• C)rise by less than the full increase in income.
• D)fall,as an increase in income will increase saving.
• E)remain constant,because the MPC is also constant.

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Definitions:

Metal

Metal is a category of elements or substances characterized by a shiny appearance, conductivity of heat and electricity, and the ability to be shaped under pressure or heat.

Painful Injury

Physical harm or damage to a person's body that results in significant pain or discomfort.

Highly Corrosive

Describes substances that can cause severe damage to materials, tissues, or surfaces through chemical action.

Negligent

Failing to exercise the care that a reasonably prudent person would exercise in similar circumstances.