If the Marginal Propensity to Consume,MPC,is Less Than 1 and a Household's

question 31

Multiple Choice

If the marginal propensity to consume,MPC,is less than 1 and a household's disposable income increases by $2,000,the household's consumption will _____.

• A)increase by less than $2,000
• B)increase by $2,000
• C)decrease if the total income of the household is above $100,000
• D)remain the same unless the change in income significantly affects the household's wealth
• E)increase by more than $2,000

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