The Change in Disposable Income Is $200 and the Change

question 8

Multiple Choice

The change in disposable income is $200 and the change in saving is $50.What is the marginal propensity to consume (MPC) ?

• A) 0.25
• B) 0.50
• C) 0.66
• D) 0.75
• E) There is not enough information to answer the question.

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Definitions:

Gonadotropins

Hormones produced by the anterior pituitary gland that stimulate the activity of the gonads (ovaries and testes).

Lipotropins

Hormones produced by the anterior pituitary gland, involved in fat metabolism and the stimulation of lipolysis.

Pheromones

Chemical substances produced and released into the environment by animals, including humans, that affect the behavior or physiology of others of its species.

Allomones

Chemical substances produced and released by one species that affect the behavior of another species, often functioning as a defense mechanism or to attract mates.