If Income Increases by $100 and the MPC Is 3/4

question 23

Multiple Choice

If income increases by $100 and the MPC is 3/4 (0.75) ,then consumption increases by

• A)$25
• B)$66.66
• C)$50
• D)$33.33
• E)$75

---

Definitions:

Genetic Predispositions

The inherited genetic patterns that influence an organism's traits, behaviors, or vulnerability to certain diseases.

Social And Environmental Conditions

External factors, including society's structures, culture, and the physical environment, that influence individuals' lives and development.

Subliminal Presentation

A method of presenting stimuli below the threshold of conscious awareness, often used in studies to assess the influence on behavior or perception without conscious recognition.

Cognitive Responses

Mental reactions and processes resulting from the perception and interpretation of information.