Suppose Consumption Is Equal to £170

question 78

Multiple Choice

Suppose consumption is equal to £170. If autonomous consumption is £20 and income is £200, what is the value of the marginal propensity to consume (MPC) ?

• A) 0.5
• B) 0.65
• C) 0.7
• D) 0.75

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Definitions:

Mechanical Force

A push or pull action resulting from the interaction of physical objects, which can cause an object to move, stop, or change direction.

Torque Converter

A type of fluid coupling that allows the engine to spin somewhat independently of the transmission, used in automatic transmissions to improve smoothness.

Hydrodynamics

The science of forces acting on, or exerted by, liquids, usually, but not always, in confined circuits.

Hydraulics Principles

Fundamental concepts governing the behavior and operation of hydraulic systems, including fluid dynamics, pressure, and flow control.