Suppose That When Disposable Income Increases by $1,000, Consumption Spending

question 391

Multiple Choice

Suppose that when disposable income increases by $1,000, consumption spending increases by $750. Given this information, we know that the marginal propensity to save (MPS) is

• A) 0.25.
• B) 0.75.
• C) 1.33.
• D) 4.

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Definitions:

WT ECU

A Weight Terminal Electronic Control Unit; a device designed for managing and monitoring weight-related data in vehicular and industrial systems.

Cruise Control

An electronic system that automatically controls the speed of a vehicle, maintaining a consistent speed as set by the driver.

Electrical Circuit

An electrical circuit is a pathway or loop that allows for the flow of electric current, consisting of sources, connections, and electrical components.

Data Link

A communication channel used for transferring digital data between devices or systems.