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:

Electroconvulsive Therapy (ECT)

A medical treatment most commonly used for severe depression, involving electrical stimulation of the brain while the patient is under anesthesia.

Barbiturates

A class of drugs used as sedatives and hypnotics, which can also provide relief from anxiety, insomnia, and seizures.

Couple Therapy

A form of psychotherapy that focuses on improving communication and resolving conflicts between partners in a relationship.

Depression

A mood disorder characterized by unrelenting feelings of sadness or a lack of enthusiasm for tasks, causing notable disruption in daily routines.