The Table Below Shows Disposable Income and Desired Consumption for a Closed

question 85

Multiple Choice

The table below shows disposable income and desired consumption for a closed economy with no government.
TABLE 21-1
-Refer to Table 21-1.The marginal propensity to consume is equal to

• A)0.8.
• B)0.67.
• C)0.6.
• D)0.4.
• E)0.2.

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Definitions:

Role Modeling

The process in which individuals influence others by serving as examples or patterns of behavior for them to emulate.

Proper Behavior

Conduct that is regarded as socially acceptable or appropriate in a given situation or environment.

Well-Liked

Being favorably regarded or appreciated by a wide range of individuals.

Rational Persuasion

An approach to persuading individuals by presenting reasoned discourse and concrete proof with the aim of modifying their beliefs, perspectives, or conduct.