If a Family's Marginal Propensity to Consume (MPC)is 0

question 75

Multiple Choice

If a family's marginal propensity to consume (MPC) is 0.7,it is

• A) operating at the break-even point.
• B) spending 70% of any increase to its disposable income.
• C) necessarily dissaving.
• D) spending 70% of its income on consumer goods.
• E) saving 70% of its incomE.

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Definitions:

Monopoly

A market structure characterized by a single seller or producer dominating the entire market, with no close substitutes for the product or service offered.

Behavioural Agent

An entity in software or computing that acts autonomously in an environment by responding to sensory inputs with actions that maximize its chance of achieving designated goals.

Managerial Agent

A person who makes decisions and acts on behalf of the owners of a company, typically within the framework of agency theory.

Change Agent

An individual or entity that initiates or facilitates change within an organization to achieve a desired goal.