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:

Life Cycle

The series of stages that an entity (such as a product, project, or organism) goes through from its inception to its conclusion or demise.

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Product Design

The process of creating new products by conceiving, designing, and iterating, focusing on both functionality and appearance.

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Small to medium-sized vessels primarily designed for the transportation of people or goods across water bodies, differing in terms of size, shape, and capacity.