If Disposable Income Is $900 Billion When the Average Propensity

question 17

Multiple Choice

If disposable income is $900 billion when the average propensity to consume is 0.9, it can be concluded that:

• A) The marginal propensity to consume is also 0.9
• B) The marginal propensity to save is 0.1
• C) Consumption is $900 billion
• D) Saving is $90 billion

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Definitions:

Gigantomachy

In ancient Greek mythology, the battle between gods and giants.

Altar of Zeus

A monumental construction built in Pergamon (now Turkey), celebrated for its rich sculptural frieze depicting the Gigantomachy, the battle between gods and giants in Greek mythology.

Pergamenes

Refers to the people from ancient Pergamon, a rich and powerful ancient Greek city located in the modern-day territory of Turkey.

Drapery

Cloth artistically arranged and depicted in art to cover, protect, or adorn figures or objects, highlighting texture and movement.