If the Marginal Propensity to Consume Is 0

question 171

Multiple Choice

If the marginal propensity to consume is 0.75,net taxes are fixed at $2,000 and real income rises by $12,000,by how much will real consumption spending increase?

• A) $9,000
• B) $8,000
• C) $7,500
• D) $7,000
• E) $10,000

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Definitions:

GPU

stands for Graphics Processing Unit, a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device.

Securely Erase Data

A process to permanently and irreversibly remove data from a storage device so that it cannot be recovered.

Overwritten

The process of replacing old data with new data in a storage device.

Instruction Set

The collection of commands that a specific CPU can execute. Each CPU has its own unique instruction set.