If Consumption Is $750 When Real Disposable Income Is $1,000

question 434

Multiple Choice

If consumption is $750 when real disposable income is $1,000, the average propensity to consume is

• A)0.80.
• B)0.75.
• C)0.50.
• D)0.25.

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Definitions:

Glomerulus

A network of capillaries located in the kidney that filters blood to form urine.

Capillaries

The smallest blood vessels in the body, responsible for the exchange of nutrients and waste materials between the blood and tissues.

Secretion

The mechanism whereby compounds are synthesized and expelled from a cell, gland, or organ, either to fulfill a specific task in the body or to be excreted.

Filtrate

The liquid that has passed through a filter, removing certain particles or substances.