If a Household's Income Falls from $26,000 to $24,000 and Its

question 104

Multiple Choice

If a household's income falls from $26,000 to $24,000 and its consumption spending falls from $25,000 to $23,500,then its

• A)marginal propensity to consume is 0.98
• B)marginal propensity to consume is 1.33
• C)marginal propensity to consume is 0.94
• D)marginal propensity to save is 0.02
• E)marginal propensity to save is 0.25

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Definitions:

Economic Requirements

The financial needs or conditions necessary to sustain or initiate a business, project, or standard of living.

Ethical Followership

The practice of supporting leaders and contributing to a group or organization in a manner that is consistent with ethical principles.

Ethical Challenges

Situations that pose moral dilemmas, requiring individuals or organizations to make decisions based on ethical principles.

Organizations

Structured groups of people who work together to achieve specific goals or objectives.