Data on Disposable Income and Consumption Spending for the Adam

question 90

Multiple Choice

Data on disposable income and consumption spending for the Adam Smith family are given below:
Based on these data,the Adam Smith family has a marginal propensity to consume of

• A) 0.9.
• B) 0.8.
• C) 0.75.
• D) 0.6.
• E) 0.5.

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Definitions:

Personal Liability

The legal responsibility individuals have to fulfill the obligations of debt or other legal responsibilities personally, risking personal assets.

Brazilian Shoes

Footwear produced in Brazil, potentially noting the industry's significance or distinctive styles.

Restricting Imports

Government policies aimed at reducing the number of goods and services that can be imported into a country to protect domestic industries.

Personal Income

the total earnings received by individuals from all sources before taxes, including wages, salaries, benefits, and investment income.