Fred's Consumption Purchases Fall from $140 000 in 2011 to $100

question 155

Multiple Choice

Fred's consumption purchases fall from $140 000 in 2011 to $100 000 in 2012,as his disposable income falls from $200 000 in 2011 to $150 000 in 2012.Which of the following statements about Fred's consumption is accurate?

• A)Fred's APC in 2012 equals 0.7.
• B)Fred's MPC equals 0.8.
• C)Fred's APC was higher in 2012 than in 2011.
• D)Fred's MPC equals 0.7.

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Definitions:

Ethical Standards

Guidelines or principles designed to govern behavior and decision-making in accordance with moral values and norms.

Truth Telling

The act of conveying information or facts in an honest and transparent manner.

Negotiating Process

The negotiating process entails the series of steps and interactions between parties attempting to reach an agreement or settle a dispute.

Explanations

Statements or reasons given to make something clear or understandable.