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

question 21

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

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Definitions:

Isomers

Compounds with the same molecular formula but different structures or spatial arrangements of atoms.

Newman Projection

A method of drawing a molecule to visualize the conformational relationship between different atoms or groups in terms of their spatial orientation, usually focusing on carbon-carbon bonds.

Perspective Structure

A method of drawing molecules to represent three-dimensional structure on a two-dimensional plane, highlighting the spatial arrangement of bonds.

Conformation

The spatial arrangement of atoms in a molecule that can be altered by rotation around single bonds, without breaking chemical bonds.