If the Marginal Propensity to Consume Is 0

question 341

Multiple Choice

If the marginal propensity to consume is 0.8,every $10 increase in disposable income increases

• A) consumption expenditure by $0.80.
• B) consumption expenditure by $18.00.
• C) saving by $0.20.
• D) consumption expenditure by $8.00.

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Definitions:

Pulmonary Trunk

The major blood vessel that originates from the right ventricle of the heart and bifurcates into the left and right pulmonary arteries, carrying deoxygenated blood to the lungs.

Pulmonary Artery

The artery carrying deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Left Lung

The lung on the left side of the body, which is smaller than the right lung and consists of two lobes to accommodate the heart.

Umbilical Vein

The blood vessel in a developing embryo and fetus that carries oxygenated blood from the placenta to the growing baby.