If the MPC Is

question 83

Multiple Choice

If the MPC is .8 and disposable income is $200,then:

• A) consumption and saving cannot be determined from the information given.
• B) saving will be $20.
• C) personal consumption expenditures will be $80.
• D) saving will be $40.

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Definitions:

Recognition

The process of identifying something you have seen, known, or experienced before.

Recall

The cognitive process of retrieving information from memory, often studied in the context of understanding how experiences and knowledge are encoded, stored, and retrieved.

Relearning

The process of learning material or skills that were previously learned and then forgotten.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviours including planning, decision making, and moderating social behaviour.