If the Marginal Propensity to Consume,MPC,is Less Than 1 and a Household's

question 31

Multiple Choice

If the marginal propensity to consume,MPC,is less than 1 and a household's disposable income increases by $2,000,the household's consumption will _____.

• A)increase by less than $2,000
• B)increase by $2,000
• C)decrease if the total income of the household is above $100,000
• D)remain the same unless the change in income significantly affects the household's wealth
• E)increase by more than $2,000

---

Definitions:

Capacity Ranking

The process of ordering devices or systems based on their maximum capability to hold or process data.

Intelligent Personal Assistants

Software agents that can perform tasks or services for an individual based on commands or questions.

Multifunction Device

An electronic device that combines several functionalities, such as printing, scanning, copying, and faxing, into one machine.

CPU

The central processing unit, or CPU, is the primary component of a computer that performs most of the processing inside a computer.