If the MPC Is 0

question 172

Multiple Choice

If the MPC is 0.95,then a $10 million increase in disposable income will

• A)increase consumption by $200 million.
• B)increase consumption by $9.5 million.
• C)decrease consumption by $105 million
• D)increase consumption by $950 million.

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Definitions:

Homo Habilis

An extinct species of early human that lived approximately 2.1 to 1.5 million years ago, recognized for its use of stone tools.

Stone Tools

Prehistoric tools made from stone by early humans for cutting, scraping, and other activities.

Bipedal

The ability to walk on two legs, a key characteristic that differentiates humans and some other species from most animals.

Homo Erectus

An extinct species of early human that lived throughout much of the Pleistocene geological epoch, known for its upright walking ability.