If Income Rises from $12,000 to $12,400 and Consumption Rises

question 50

Multiple Choice

If income rises from $12,000 to $12,400 and consumption rises from $11,800 to $12,176,the marginal propensity to consume is __________ percent.

• A) 8
• B) 85
• C) 16
• D) 94

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Definitions:

Poor Credit Ratings

Indicates a low assessment of creditworthiness, suggesting that the individual or entity is a higher risk to lenders.

Relatively Safe

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Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Raytheon

A major American defense contractor and industrial corporation specializing in weapons, military, and commercial electronics.