If a Household's Income Rises from $46,000 to $46,700 and Its

question 110

Multiple Choice

If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400,then its:

• A)marginal propensity to consume is 0.86.
• B)marginal propensity to consume is 0.99.
• C)marginal propensity to consume is 0.98.
• D)marginal propensity to save is 0.01.
• E)marginal propensity to save is 0.86.

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Definitions:

Extreme Stress

A high level of stress that overwhelms an individual's ability to cope, often leading to significant psychological or physical health issues.

Repression

A defense mechanism where unwanted or uncomfortable thoughts, feelings, or desires are excluded from conscious awareness.

Recovered Memories

Memories of past events that were blocked for some period, often traumatic in nature, which resurface later in life.

False Memories

Distorted or fabricated recollections of events that did not actually occur, often influenced by suggestion or the incorporation of new information.