The Nation Has Its Own MPC

question 67

Multiple Choice

The nation has its own MPC. When national income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:

• A) 0.2.
• B) 0.5.
• C) 0.6.
• D) 0.67.
• E) 1.33.

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Definitions:

Single-Price Retailer

A single-price retailer is a retail business model where all items in the store are sold at the same price point, simplifying the shopping experience for consumers.

Warehouse Club

A retail store, usually requiring membership, that sells a wide variety of goods in bulk at discounted prices.

Hypermarket

A large retail space combining a supermarket and a department store, offering a wide range of products under one roof.

Supercenter

A large retail establishment that combines a supermarket with a department store, offering a wide range of goods and services under one roof.