If Consumption Is $1,230 When Disposable Income Is $1,420,and Consumption

question 122

Multiple Choice

If consumption is $1,230 when disposable income is $1,420,and consumption is $1,400 when disposable income is $1,620,then the marginal propensity to consume (MPC) is

• A) 1.15.
• B) 0.15.
• C) 6.67.
• D) 0.85.

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Definitions:

Clinical Approach

A methodology generally used in healthcare settings that focuses on observing and treating patients in a systematic and practical manner.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

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The process by which companies evaluate and choose from a group of applicants the individuals best suited for a particular job or role.

Markov Analysis

A method for tracking the pattern of employee movements through various jobs.