If a $1,000 Increase in Income Leads to a $750

question 262

Multiple Choice

If a $1,000 increase in income leads to a $750 increase in consumption expenditures, then the marginal propensity to consume is

• A)0.75 and the multiplier is 1 1/3.
• B)0.75 and the multiplier is 4.
• C)0.25 and the multiplier is 1 1/3.
• D)0.25 and the multiplier is 4.

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Definitions:

Hypothalamus

A region of the brain that coordinates activities of the autonomic nervous system and the pituitary, controlling body temperature, hunger, and thirst.

Antidiuretic Hormone

A hormone released by the pituitary gland that regulates water balance in the body by increasing water absorption in the kidneys.

Blood Osmolality

The concentration of solutes in the blood, important for regulating water balance and electrolyte distribution within the body.

Blood Pressure

The force that circulating blood exerts against the walls of blood vessels, an essential indicator of cardiovascular health.