What Is the Value of the MPC If $66 Out

question 232

Multiple Choice

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

• A) 0.66
• B) $166
• C) 0.34
• D) $34
• E) More information is needed to determine the MPC.

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Definitions:

Market

A place or platform where buyers and sellers come together to trade goods, services, or financial instruments.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with restrictions on the entry of new firms.

Law of Demand

An economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa, holding all else constant.

Prices

The amount of money required to purchase goods or services, typically set by supply and demand dynamics in the market.