If the Number of Persons Who Attend the Club Meeting

question 23

Multiple Choice

If the number of persons who attend the club meeting this week is X, then the number of people who will attend next week is 120 + 0.20X.What is a long-run equilibrium attendance for this club?

• A)120
• B)600
• C)240
• D)150
• E)30

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Definitions:

Saving

The portion of income not spent on immediate consumption but set aside for future use, typically in bank accounts, investments, or other forms of financial savings.

Disposable Income

The spending and saving financial capacity of households after deductions for income taxes.

MPC

Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.

Consumption

The act of using goods and services for personal use, often considered in economic terms as an indicator of economic health.