If Disposable Income Increases by $100 and Consumption Increased by $85,ceteris

question 22

Multiple Choice

If disposable income increases by $100 and consumption increased by $85,ceteris paribus,we may conclude that

• A)the marginal propensity to consume is 0.85.
• B)the marginal propensity to consume is 0.15.
• C)$15 is autonomous consumption.
• D)a change in disposable income is induced by a change in consumption.

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Definitions:

Agreeableness

Agreeableness is a personality trait that involves being warm, kind, cooperative, and sympathetic towards others.

Neuroticism

A personality trait involving a long-term tendency to be in a negative or anxious emotional state, part of the Big Five personality traits.

Emotional Stability

A personality trait characterized by the ability to remain calm and composed under stress, showing resilience in the face of adversity.

Neuroticism

A feature of an individual's character marked by frequent changes in emotions, feelings of unease, irritability, concern, and a general state of sorrow.