If the MPC Equals 0.75, Then

question 428

Multiple Choice

If the MPC equals 0.75, then

• A) for every $100 increase in consumption expenditure, disposable income increases by $75.
• B) consumption expenditure is always more than disposable income.
• C) for every $100 increase in disposable income, saving increases by $75.
• D) for every $100 increase in disposable income, saving increases by $25.

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Definitions:

Deinstitutionalization

The process of releasing individuals from institutional care (such as psychiatric hospitals) to care in the community.

Mentally Ill

Individuals suffering from mental health disorders that affect their thinking, feeling, mood, or behavior.

Halfway Houses

Facilities that provide a transition for individuals, such as recovering addicts or prisoners, back into society, offering support and supervision.

Poverty Line

A financial threshold below which individuals or families are considered to live in poverty, based on their income or consumption levels.