If Income Increases by $100 and the MPC Is 3/4

question 23

Multiple Choice

If income increases by $100 and the MPC is 3/4 (0.75) ,then consumption increases by

• A)$25
• B)$66.66
• C)$50
• D)$33.33
• E)$75

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Definitions:

Stress Hormones

Biochemicals released in the body in response to stress, notably including cortisol and adrenaline, which prepare the body to cope with threatening situations.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as viruses and bacteria.

Pain Tolerance

The maximum level of pain that a person is able to tolerate or endure before they perceive it as unbearable.

Latent Meaning

The underlying or hidden significance of a message, as opposed to its overt or explicit meaning.