Use the Information Below to Answer the Following Questions

question 50

Multiple Choice

Use the information below to answer the following questions.
Fact 11.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from billion to $540 billion.
-Consider Fact 11.1.1.The marginal propensity to consume is

• A)0.80.
• B)0.75.
• C)0.25.
• D)0.40.
• E)0.60.

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Definitions:

Motivation To Change

The drive or willingness of individuals or groups to alter their behavior, attitudes, or beliefs in response to external or internal pressures.

Opportunity To Change

The possibility or potential for modification, transformation or transitioning from one state or condition to another.

Motivation

The internal drive or external incentive that stimulates an individual to act towards achieving a goal.

Capability

The ability or qualities necessary to do something effectively.