Everything Else Held Constant,if Consumption Expenditure Increases by 65 for a 100

question 96

Multiple Choice

Everything else held constant,if consumption expenditure increases by 65 for a 100 increase in disposable income,the mpc is

• A)0.
• B)0.5.
• C)0.65.
• D)1.

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Definitions:

Independent Variable

The variable that is manipulated or controlled by the researcher to test its effect on the dependent variable.

Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Additional Interest

Interest that accumulates in addition to the regular interest due, often the result of late payments or changes in interest rates.

Down Payment

An initial upfront portion of the total amount due, often in the context of purchasing an expensive item like a house, which is not financed through a loan.