If the Marginal Propensity to Consume Is 0

question 128

Multiple Choice

If the marginal propensity to consume is 0.85, what change in consumption expenditure would you expect if disposable income increases by $200 million?

• A)$20 million
• B)$170 million
• C)$180 million
• D)$1,800 million
• E)$18 million

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Definitions:

Personal Coping Skills

Individual techniques and strategies used to manage stress, adapt to challenges, and handle emotional distress.

Difficult Situations

Describes challenging or hard to manage circumstances that require problem-solving or decision-making.

Stressful Situations

Circumstances that trigger a physical, mental, or emotional strain or tension.

Superficial Cuts

Minor wounds affecting only the top layers of skin, usually not requiring professional medical treatment.