Suppose an Increase in Disposable Income from $3 Trillion to $3.2

question 118

Multiple Choice

Suppose an increase in disposable income from $3 trillion to $3.2 trillion increases consumption from $2.5 trillion to $2.6 trillion.The marginal propensity to consume is _____.

• A)0.1
• B)0.2
• C)0.5
• D)0.8
• E)0.9

Recognize how a change in the number of consumers affects market demand.

Understand how changes in consumer income affect demand for goods.

Identify the factors that lead to increases or decreases in market demand.

Comprehend how expectations about future prices affect current demand.

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Definitions:

Letter Grades

Letter Grades are symbols used in educational institutions to represent the quality of a student's work or performance, ranging typically from A (excellent) to F (failure).

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Units used by educational institutions to measure a student's academic workload and progress toward a degree.

Assessed Value

The value assigned to property by a government tax assessor to determine tax obligations.

Property Tax Rate

The percentage of a property's assessed value that is levied annually as tax by local governments, used to fund public services and amenities.