If the Marginal Propensity to Consume (MPC)equals 0

question 144

Multiple Choice

If the marginal propensity to consume (MPC) equals 0.9,the multiplier is _____.

• A)1
• B)2
• C)5
• D)10
• E)12

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Definitions:

Nonlabor Income

Income received that does not come from working, such as investment income, social security benefits, or inheritance.

Leisure

Free time spent away from business, work, and domestic chores, often used for rest, recreation, and personal interests.

Wage Rate

The wage rate is the amount of money paid to a worker for a specified quantity of work, typically expressed on an hourly, daily, or piecework basis.

Tangerines

A small citrus fruit with a deep orange color, easy to peel skin, and a sweet flavor.