If Your MPC Is 0

question 284

Multiple Choice

If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by

• A) $5.
• B) $200.
• C) $100.
• D) $50.
• E) $95.

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Definitions:

Subjective Norms

Individual perceptions of social pressure to perform or not perform a particular behavior, which can influence their actions.

Health Benefits

Positive effects on physical and/or mental well-being obtained through activities, foods, practices, or medical treatments.

Transtheoretical Model

A model of behavior change that assesses an individual's readiness to act on a new healthier behavior and provides strategies to guide the individual through the stages of change to achieve it.

Precontemplation

The stage of change in which individuals do not yet recognize that they have a problem or need to change.