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

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Definitions:

Addition Polymer

A polymer formed by the sequential addition of monomer molecules with unsaturated bonds, without the loss of any molecule or atom.

Condensation Polymer

A type of polymer formed by the reaction of two monomers with the release of a small molecule, often water, in the process.

Transesterification

A chemical process in which an ester reacts with an alcohol to produce a new ester and a new alcohol, critical in biodiesel production.

Dimethyl Terephthalate

An organic compound used primarily in the production of polyesters, specifically polyethylene terephthalate (PET).