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

---

Definitions:

Smooth

Characteristic of muscles that perform involuntary movements, found in the walls of internal organs.

Arms

Upper limbs of the human body, extending from the shoulders to the hands, used for grasping and manipulation.

Ascending Pathway

Neural paths that transmit sensory information from the body to the brain.

Secondary Neuron

A neuron that receives a synaptic input from primary neurons and transmits the signal to other neurons or muscles.