Which of the Following Is True

question 79

Multiple Choice

Which of the following is true?

• A)​The fraction of their total disposable income that households spend on consumption is called the marginal propensity to consume.
• B)​As the real interest rate falls, additional projects with lower expected rates of return become profitable for firms, and the demand for investment curve shifts right.
• C)​Firms with excess inventories of finished goods have an increased incentive to invest in new capital to put those inventories to productive use.
• D)​None of the above is true.

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Definitions:

Human Nucleus

Refers to the central part of a cell in humans that contains most of the cell's genetic material.

Charles Darwin

A British naturalist known for his contributions to the science of evolution and his theory of natural selection.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.

British Naturalist

A scientist from Britain who studies the natural world, especially plants and animals.