If Consumption Increases by $9 When Disposable Income Increases by $10

question 145

Multiple Choice

If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:

• A)0.1.
• B)0.9.
• C)1.0.
• D)9.0.

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Definitions:

German Managers

Managers who operate within Germany's business environment, known for their strong emphasis on efficiency, discipline, and thorough planning.

Performance Orientation

As a cultural value, the degree to which a society encourages (or should encourage) and rewards group members for performance improvement and excellence.

Power-Distance Value

A cultural dimension that describes the extent to which individuals within a society accept and expect power to be distributed unequally.

Unequal Power

Describes a situation where power is distributed unevenly among individuals or groups, leading to disparities in influence and authority.