If Real Consumption Spending Increases by $400 Billion Each Time

question 26

Multiple Choice

If real consumption spending increases by $400 billion each time real disposable income rises by $1,000 billion,the marginal propensity to consume is

• A) 40
• B) 4
• C) 0.4
• D) 0.04
• E) 0.004

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Definitions:

Classical Conditioning

The technique of learning that entails the repetitive coupling of two stimuli, resulting in a reaction that while initially initiated by the second stimulus, is later initiated by the first stimulus alone.

Environmental Factor

Any element that can affect living organisms or ecosystems, including both natural and man-made conditions.

Hormonal Fluctuations

Variations in the level of hormones in the body, which can affect a wide range of bodily functions as well as mood and behavior.

Regulation Of Hunger

The complex biological and psychological processes that manage the feeling of hunger and the intake of food.