An MPC Value of Less Than 1

question 148

Multiple Choice

An MPC value of less than 1.0 indicates that as income increases,

• A) consumption also increases, and by more than the increase in income.
• B) consumption also increases, and at the same rate as the increase in income.
• C) consumption will go in the opposite direction and decrease.
• D) consumption also increases, though not as much as income.

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Definitions:

Damages

A monetary award sought as a remedy for a breach of contract or a tortious act.

Defendant

A person or entity against whom a legal action is brought in a court of law.

Summons

A legal document issued by a court or a legal authority demanding the presence of the individual named in the document at a particular proceeding.

Complaint

A formal statement expressing dissatisfaction or alleging harm from an action or event.