Suppose the MPC in an Economy Is 0

question 147

Multiple Choice

Suppose the MPC in an economy is 0.9.The APC is initially 0.95 and disposable income is $4 billion.If disposable income increases to $14 billion,what is the new level of consumption?

• A)$13.3 billion.
• B)$12.8 billion.
• C)$9 billion.
• D)$12.6 billion.

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Definitions:

Shelf Positioning

The strategic placement of products within a store or on a website to maximize visibility and sales potential, often based on consumer behavior patterns.

Hair Product

A type of cosmetic product designed specifically for the care, treatment, styling, or grooming of hair.

Personal Space

An area two to four feet from a person; it is the closest zone a stranger or business acquaintance is normally allowed to enter.

Consent

The agreement or permission granted by an individual for something to happen, often provided after being informed about what will happen.