If the MPC Is 0

question 67

Multiple Choice

If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion,consumption will increase by

• A)$2,000 billion.
• B)$800 billion.
• C)$1,200 billion.
• D)$600 billion.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Period

A specified duration of time characterized by particular events, conditions, or phenomena.

Interest

The expense associated with taking out a loan, usually shown as a percentage of the total amount loaned.

Interest Earned

The amount of interest generated from an investment or savings over a certain period of time.