If the Marginal Propensity to Consume Is 0

question 133

Multiple Choice

If the marginal propensity to consume is 0.5 and disposable income increases by $10,000,by how much will consumption spending increase?

• A) $10,000
• B) $500
• C) $50
• D) $5,000
• E) $9,524

---

Definitions:

Clear Statement

A statement expressed in an unambiguous and straightforward manner, leaving no room for confusion or misunderstanding.

Buffer

A temporary storage area in computing where data is held while it is waiting to be transferred or processed, helping to manage differences in operation speed.

Direct Approach

A straightforward method of communication or problem-solving that involves dealing with issues in a clear and explicit manner.

Audience Comply

The act of an audience or group conforming, following, or acting in accordance with requests, commands, or conditions presented to them.