If Consumption Is Given by C= 10 + 0

question 4

Multiple Choice

If consumption is given by C= 10 + 0.8 Yd then as income increases:

• A) The size of the marginal propensity to consume increases and approaches the average propensity to consume.
• B) The size of the marginal propensity to consume approaches 1.
• C) The size of the average propensity to consume approaches infinity.
• D) The size of the average propensity to consume approaches the marginal propensity to consume.

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Definitions:

Globalization

The method of connecting and merging among individuals, corporations, and nations globally, frequently propelled by global commerce and investment and facilitated by information technology.

Cultural Differentialism

The perspective that cultures are distinctly different from one another and should be evaluated on their own terms rather than through the lens of another culture.

Cultural Convergence

The phenomenon where different cultures grow more similar over time due to influences like media, technology, and increased global interactions.

McDonaldization

A concept that describes the process by which the principles of the fast-food industry, such as efficiency and standardization, dominate other sectors of society.