If the MPC Is 0

question 172

Multiple Choice

If the MPC is 0.95,then a $10 million increase in disposable income will

• A)increase consumption by $200 million.
• B)increase consumption by $9.5 million.
• C)decrease consumption by $105 million
• D)increase consumption by $950 million.

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Definitions:

Prosocial Cultural Values

Cultural norms that promote positive and helpful behavior towards others.

Mortality

The state of being mortal or susceptible to death; often used in statistics to refer to the rate of death within a population.

Increases Helping

The phenomenon where incidents or conditions lead to a rise in actions intended to provide aid or benefit to others.

Communal Orientation

A perspective or attitude emphasizing the importance of community, relationships, and collective well-being over individualistic goals.