If the Marginal Propensity to Consume Is Equal to 0

question 97

Multiple Choice

If the marginal propensity to consume is equal to 0.75,then a $100 increase in disposable income leads to a _________ increase in consumption.

• A) $0.25
• B) $0.75
• C) $25
• D) $75
• E) $100

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Definitions:

Cathartic Release

The act of letting go which brings relief from intense or suppressed feelings.

Hostile Humor

A form of humor that involves sarcasm or making fun of others, often indicative of underlying aggression or discomfort.

Aggression

Behavior aimed at causing harm or injury to others, either physically or psychologically.

Socially Acceptable Outlets

Activities or behaviors that are considered appropriate and acceptable by society for expressing feelings or energy.