If Your Income Increases from $30,000 to $35,000 and Your

question 112

Multiple Choice

If your income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000, your marginal propensity to consume (MPC) is:

• A) 0.2.
• B) 0.4.
• C) 0.5.
• D) 0.8.
• E) 1.0.

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Definitions:

Anonymity

The condition of being anonymous, where an individual's identity is unknown or concealed.

Leadership Dimension

An element or aspect that contributes to the complex role of guiding or directing a group, organization, or nation.

Initiating Structure

Organizing and defining relationships in the group by activities such as assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations of team members.

Self-fulfilling Prophecy

A belief or expectation that indirectly or directly causes itself to become true, through the behavior it inspires.