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:

Cultures

The customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their culture, contributing to their development as societal members.

Voluntary

Actions, behaviors, or associations that are undertaken willingly and without coercion.

Age Differentiation

The process of categorizing and treating individuals differently based on their age, often leading to stereotyping and discrimination, especially in the workplace or in marketing.