The MPC Is Equal to the

question 212

Multiple Choice

The MPC is equal to the

• A) change in consumption expenditure divided by the change in disposable income that brought it about.
• B) change in consumption expenditure divided by the total disposable income that brought it about.
• C) level of consumption expenditure divided by the level of total disposable income that brought it about.
• D) level of consumption divided by the change in disposable income that brought it about.
• E) change in disposable income divided by the change in consumption expenditure.

---

Definitions:

Wholly Owned

A company or entity that is 100% owned by another company or individual.

Vertical Boycott

An anti-competitive practice where companies at different supply chain levels agree not to deal with a particular company or group.

Sherman Act

A landmark federal statute in the anti-trust law of the United States that prohibits monopolistic practices and promotes competition.

Price-Cutter

An individual or company that significantly reduces the prices of goods or services, typically to attract more customers or to outcompete rivals.