-How Much Is the Marginal Propensity to Save When Disposable

question 55

Multiple Choice

$$\begin{array} { c c } \text { Disposable Income } & \text { Consumption } \\0 & \$ 200 \text { billion } \\\$ 200 \text { billion } & 300 \text { billion } \\400 \text { billion } & 400 \text { billion } \\600 \text { billion } & 500 \text { billion } \\800 \text { billion } & 600 \text { billion }\end{array}$$
-How much is the marginal propensity to save when disposable income rises from $400 billion to $600 billion?

• A).25
• B).5
• C).75
• D)1.0
• E)Cannot be determined

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Definitions:

Incentives

Rewards or motivations provided to individuals or groups to encourage desired behaviors or outcomes.

Adaptive Response

is a reaction or adjustment made by an organism or system in response to changes in its environment to maintain or restore optimal functionality.

Physiological Disorders

Medical conditions that affect the body's normal biological functions, often requiring clinical treatment or intervention.

Challenging

Refers to tasks or goals that are difficult and stimulating, often requiring effort and perseverance to overcome.