If Consumption Is $5 Billion When Disposable Income Is 0

question 29

Multiple Choice

If consumption is $5 billion when disposable income is 0, and if the marginal propensity to consume is 0.60, what is consumption when disposable income is 40 billion? If it's necessary, round your answer to one decimal place. ​

• A) $200.6 billion
• B) $485 billion
• C) $29 billion
• D) $17 billion
• E) $4,000.6 billion

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Definitions:

Wakefulness

The state of being awake and conscious, characterized by alertness and the ability to engage with the environment.

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, coordinating actions and sensory information.

Attachment

An emotional bond that forms between individuals, typically between a child and caregiver, influencing personal development and emotional connections in adulthood.

Ambivalent

Mixed feelings or contradictory attitudes towards something or someone.