When Jack's Income Increases by $1,000,he Spends an Additional $850

question 183

True/False

When Jack's income increases by $1,000,he spends an additional $850 dollars.This implies that his marginal propensity to consume is 0.85.

---

Definitions:

Feedback

Information given to someone about their performance or behavior for the purpose of improvement.

Middle Stage

Refers to the intermediate phase in a process, development, or progression where initial adjustments have been made and the groundwork for final outcomes is being established.

Beginning Stage

The initial phase of a process, project, or relationship where things are starting or being developed.

End Stage

The final phase of a situation, condition, or process where things are concluding or coming to a completion.