If the Marginal Propensity to Consume Is ________,Then a $2

question 83

Multiple Choice

If the marginal propensity to consume is ________,then a $2 trillion increase in disposable income increases consumption expenditure by $1.2 trillion.If the marginal propensity to consume is ________,then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion.

• A)1.67;2.25
• B)1.2;1.6
• C)0.6;0.8
• D)6.0;8.0
• E)None of the above because a $2 trillion increase in disposable income always leads to a $2 trillion increase in consumption expenditure.

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Definitions:

Albumin

A type of protein found in blood plasma, essential for maintaining osmotic pressure and transporting substances.

Globulins

A group of proteins in the blood plasma that play important roles in immune responses, blood clotting, and transporting substances.

Osmotic Pressure

The pressure required to prevent the flow of a solvent into a solution through a semipermeable membrane.

Plasma Proteins

Proteins found in plasma, the liquid component of blood, serving various functions including clotting, defense against pathogens, and transport of substances.