Exhibit 8-1 Disposable Income and Consumption Data

question 231

Multiple Choice

Exhibit 8-1 Disposable income and consumption data
In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:

• A)0.2.
• B)0.6.
• C)0.8.
• D)1.0.
• E)1.25.

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Definitions:

Basal Ganglia

A group of nuclei in the brain involved in movement regulation, emotion, and cognitive processing.

Medial Temporal Cortex

A region of the brain within the medial temporal lobe, involved in memory formation, organization, and retrieval.

Long-term Potentiation (LTP)

A long-lasting increase in signal transmission between two neurons that results from stimulating them synchronously, believed to be a cellular mechanism underlying learning and memory.

Synaptic Effectiveness

The strength or efficacy of synaptic transmission, influencing how effectively a neural signal is passed from one neuron to another.