If Real Consumption Spending Increases by $400 Billion Each Time

question 26

Multiple Choice

If real consumption spending increases by $400 billion each time real disposable income rises by $1,000 billion,the marginal propensity to consume is

• A) 40
• B) 4
• C) 0.4
• D) 0.04
• E) 0.004

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Definitions:

Lead Time

The time interval from when an order is placed until it is received and available for use or sale.

MPS

Master Production Schedule, a plan for individual commodities to be produced in each time period, such as production, staffing, inventory.

Common Parts

Components or elements that are standard and used interchangeably among different products or systems.