Which of the Following Changes in Disposable Income Would Lead

question 30

Multiple Choice

Which of the following changes in disposable income would lead to the greatest increase in consumption?

• A)​a $20,000 increase in disposable income, if MPC equals 0.5
• B)​a $12,000 increase in disposable income, if MPC equals 0.75
• C)​a $15,000 increase in disposable income, if MPC equals 0.6
• D)​a $30,000 increase in disposable income, if MPC equals 0.25

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in pursuit of profit and innovation.

Experiences

Events or occurrences that leave an impression on someone, often contributing to their knowledge or skill set.

Angel Investor

A wealthy individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity.

Debt Financing

The process of raising operational funds or capital by borrowing, which typically involves the issuance of bonds, bills, or notes payable to lenders.