Exhibit 15-1 Disposable Income and Consumption Data

question 30

Multiple Choice

Exhibit 15-1 Disposable income and consumption data

-In Exhibit 15-1,when disposable income (Y) is increased from $1,000 to $2,000,the marginal propensity to consume is:

• A) 0.2.
• B) 0.6.
• C) 0.8.
• D) 1.0.
• E) 1.25.

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Definitions:

Chimpanzees

A species of great ape native to the forests and savannas of tropical Africa, known for its complex behaviors and social structures.

Nocturnal

Active at night and at rest during the day.

Arboreal

Relating to or resembling a tree or life in the trees; often used to describe animals that live in trees.

Diurnal

Active during the day and at rest at night.