If the Marginal Propensity to Consume Is 0

question 5

Multiple Choice

If the marginal propensity to consume is 0.9 and income increases from $10,000 to $11,000, by how much does consumption increase?

• A) $11,000
• B) $1,000
• C) $900
• D) $100

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Definitions:

Basic Needs

Fundamental requirements that serve as the foundation for survival, including food, water, shelter, and clothing.

Care Institutions

Organizations or facilities that provide care services, such as healthcare, childcare, or support for the elderly and disabled.

Disengagement Theory

A theory suggesting that aging individuals gradually withdraw from social roles and relationships as a natural part of aging.

Social Activity

Actions or endeavors that involve interacting with others within a society, encompassing both recreational and organized events aimed at fostering community and relationships.