If an Increase in Disposable Income Causes Consumption to Increase

question 73

Multiple Choice

If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $2,000 to $4,000,it can be inferred that the MPC equals

• A)0.4.
• B)0.6.
• C)0.5.
• D)0.75.

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Definitions:

Celsius

A scale and unit of measurement for temperature where 0 degrees represents the freezing point and 100 degrees the boiling point of water at sea level.

Fahrenheit

A scale of temperature on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Celsius

A scale and unit of measurement for temperature where 0° represents the freezing point of water, and 100° represents the boiling point at sea level.

Body Mass Index

A numerical value derived from a person’s weight and height, used to classify underweight, normal weight, overweight, and obesity.