Suppose That When Disposable Income Increases by $1,000, Consumption Spending

question 410

Multiple Choice

Suppose that when disposable income increases by $1,000, consumption spending increases by $750. Given this information, we know that the marginal propensity to consume (MPC) is

• A).25.
• B).75.
• C)$1,000/$750 = 1.33.
• D)1/.25 = 4.

Understand how online presence affects job applications.

Know the expectations regarding photos in online profiles and résumés.

Understand the advantages of different digital résumé formats in terms of formatting preservation and security.

Recognize the appropriate résumé length based on career experience.

---

Definitions:

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied in the financial markets, keeping the economy stable.

R&D Spending

Expenditures dedicated to research and development efforts aimed at innovation, product development, and improvement.

Effective Usury Laws

Regulations that set maximum interest rates on loans, intended to protect consumers from exorbitant or predatory lending rates.

Loanable Funds

The supply of financial resources available for lending, determined by savings and demand for borrowing.