If the Marginal Propensity to Consume Is 0

question 367

Multiple Choice

If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases

• A) consumption expenditure by $0.80.
• B) consumption expenditure by $80.00.
• C) saving by $0.20.
• D) consumption expenditure by $8.00.

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Definitions:

Persons

Human beings considered individually or collectively, often used in legal and formal contexts to refer to individuals.

Long-Run Equilibrium

A state in economic models where all factors of production can be adjusted, and no economic forces are prompting change, resulting in stable prices, output, and resource allocation.

Club Meeting

An organized gathering of members of a club or organization, typically for discussing matters of common interest.

Attendance

The act of being present at a location or event, often tracked for purposes such as education, employment, or participation in activities.