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:

Collective Bargaining Agreement

A written contract between an employer and a union representing the employees, outlining terms of employment, wages, hours, and working conditions.

Informal Agreement

An understanding or arrangement that is not formally documented but is recognized and respected by those involved.

Terms and Conditions

The set of rules and policies that govern employment contracts, including work hours, salaries, benefits, and job responsibilities.

Bargain Collectively

The process by which workers, through their unions, negotiate with their employers to establish the terms of employment, including wages, benefits, and working conditions.