If the Average Propensity to Consume Is 1

question 230

Multiple Choice

If the average propensity to consume is 1.0, the marginal propensity to consume is 0.6, and real disposable income increases by $100, the additional saving is

• A) $0.
• B) $40.
• C) $60.
• D) $100.

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Definitions:

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often criticized for environmental and social reasons.

Megacities

Extremely large cities, typically with a population of over 10 million people, often facing unique social, economic, and environmental challenges.

Public Water

Public water refers to the supply of water provided by government or municipal bodies to communities for drinking, washing, and other domestic purposes.