Suppose an Increase in Disposable Income from $3 Trillion to $3.2

question 118

Multiple Choice

Suppose an increase in disposable income from $3 trillion to $3.2 trillion increases consumption from $2.5 trillion to $2.6 trillion.The marginal propensity to consume is _____.

• A)0.1
• B)0.2
• C)0.5
• D)0.8
• E)0.9

---

Definitions:

Multiple Correlation

A statistical measure representing the relationship between one dependent variable and two or more independent variables.

Batting Average

A key statistical measure in baseball that represents the ratio of a batter's hits to their at-bats.

Success

The achievement of a goal or objective, often measured by specific criteria or standards in various contexts.

Multiple Correlation

A statistical technique that measures the strength of the relationship between one dependent variable and two or more independent variables.