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

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Definitions:

Stimulant Medications

Drugs that increase activity in the brain and nervous system, often prescribed to treat conditions like ADHD and narcolepsy.

Vigilance

The action or state of keeping careful watch for possible danger or difficulties.

Parenting Styles

The systemic strategies and approaches parents use in raising their children, which significantly affect children's behavior and development.

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder characterized by excessive hyperactivity, impulsivity, and/or inattention.