Suppose That When Disposable Income Rises from $3 Trillion to $3.2

question 165

Multiple Choice

Suppose that when disposable income rises from $3 trillion to $3.2 trillion,consumption rises from $2.5 trillion to $2.6 trillion.What is the marginal propensity to consume?

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

---

Definitions:

Cell Phone Use

The manner in which cell phones are utilized by individuals, encompassing a wide range of activities including communication, internet browsing, application usage, and more.

Classical Conditioning

A learning process where a neutral stimulus becomes associated with a meaningful stimulus, causing a similar response.

Serendipity

The occurrence of events by chance in a happy or beneficial way, often playing a significant role in discoveries or innovations.

Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.