If the MPC Is 0

question 201

Multiple Choice

If the MPC is 0.8 and disposable income shrinks by $100 million.Consumption would

• A) rise by $8 million
• B) rise by $80 million
• C) fall by $80 million
• D) fall by $8 million
• E) fall by $20 million

---

Definitions:

Fixed Amount

A predetermined quantity, often referring to a specific sum of money or a static measurement in experiments and statistics.

Varying Amounts

Describes quantities that differ in size, number, or extent, and are not fixed or constant.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, in behavioral psychology.

Fixed Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, leading to a high and steady rate of response.