If the Marginal Propensity to Consume Is 0

question 367

Multiple Choice

If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases

• A) consumption expenditure by $0.80.
• B) consumption expenditure by $80.00.
• C) saving by $0.20.
• D) consumption expenditure by $8.00.

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Definitions:

Spindle Fibers

Protein structures that divide genetic material in a cell by pulling chromosomes apart during cell division.

Cytokinesis

The process during cell division in which the cytoplasm of a single eukaryotic cell is divided to form two daughter cells.

Eukaryotic Chromosomes

Linear DNA molecules contained in the nucleus of eukaryotic cells, associated with a large variety of proteins such as histones, facilitating gene regulation and chromosome organization.

Histone Proteins

Proteins that package and order DNA into structural units called nucleosomes, playing a key role in gene regulation and expression.