Suppose That When Disposable Income Rises from $5

question 87

Multiple Choice

Suppose that when disposable income rises from $5.2 trillion to $6.0 trillion,consumption rises from $5.0 trillion to $5.6 trillion.What is the marginal propensity to consume?

• A)0.25
• B)0.33
• C)0.75
• D)0.67
• E)0.07

---

Definitions:

Trial Balance

A bookkeeping worksheet wherein the balances of all ledgers are compiled into debit and credit columns to ensure that total debits equal total credits.

Income Statement

A financial report summarizing revenues, expenses, and profits over a specific period, showing a company's financial performance.

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or entity.

Iodine Contrast

A type of contrast agent used in medical imaging that contains iodine, which helps enhance the visibility of internal structures.