Which of the Following Changes in Disposable Income Would Lead

question 30

Multiple Choice

Which of the following changes in disposable income would lead to the greatest increase in consumption?

• A)​a $20,000 increase in disposable income, if MPC equals 0.5
• B)​a $12,000 increase in disposable income, if MPC equals 0.75
• C)​a $15,000 increase in disposable income, if MPC equals 0.6
• D)​a $30,000 increase in disposable income, if MPC equals 0.25

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Definitions:

Operational Costs

Expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.

Family-Owned Businesses

Enterprises that are owned and managed by one or more family members across generations.

New Jobs

Roles or positions created within an economy or organization that did not previously exist.

Managerial Approach

A method or strategy employed by managers to guide, control, and operate an organization effectively, focusing on achieving specific objectives.