If the Marginal Propensity to Consume Is 0

question 133

Multiple Choice

If the marginal propensity to consume is 0.5 and disposable income increases by $10,000,by how much will consumption spending increase?

• A) $10,000
• B) $500
• C) $50
• D) $5,000
• E) $9,524

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Definitions:

Interneurons

Neurons that transmit signals between sensory neurons and motor neurons, playing a critical role in the reflexes and central nervous system.

Glial Cells

Non-neuronal cells in the central nervous system and peripheral nervous system that do not produce electrical impulses but support, nourish, and protect the neurons.

Dendrites

Dendrites are extensions of neurons that receive signals from other neurons and are crucial for neural communication and processing.

Axons

Long, threadlike extensions of neurons that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.