If Disposable Income Rises by $100 Billion and Personal Consumption

question 46

Multiple Choice

If disposable income rises by $100 billion and personal consumption expenditure rises by $60 billion,what is the average propensity to consume?

• A) 0.60
• B) 0.40
• C) -0.40
• D) -1.00
• E) impossible to calculate from these figures

---

Definitions:

Ectotherms

Cold-blooded animals whose body temperature is regulated by external environmental conditions, unlike endotherms that regulate their body temperature internally.

Cuboidal Epithelial

Cuboidal epithelial cells are cube-shaped cells that make up the epithelium, functioning in secretion and absorption, found in many glands and ducts.

Myosin

A type of protein found in muscle fibers that acts with actin in muscle contraction and movement.

Ribose

A pentose sugar that is a crucial component of RNA (ribonucleic acid).