If National Income Increases by $80 Million and Consumption Increases

question 29

Multiple Choice

If national income increases by $80 million and consumption increases by $20 million, the marginal propensity to consume is:

• A)5
• B)0.25.
• C)0.75.
• D)0.15.

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Definitions:

Over-optimism

The tendency to be too confident or hopeful about future events or outcomes, often leading to underestimating risks.

Prospects

Potential customers or clients who have shown interest in a company's product or service.

Abilities

The inherent physical or mental capacities individuals possess, which can vary widely and impact performance in various tasks or occupations.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.