Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 193

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000. What is the marginal propensity to consume?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

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Definitions:

Junk Science

Information or analysis claimed to be scientific but lacking in integrity, rigor, or adherence to established standards and methods.

Phase Change

A transition among the basic states of matter: solid, liquid, and gas, involving energy changes without altering the chemical composition of a substance.

Half-life

The time required for half the amount of a particular substance, such as a radioactive element or drug, to undergo a process of decay or elimination.

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number.