If the Average Propensity to Consume Is Initially 1

question 161

Multiple Choice

If the average propensity to consume is initially 1.0, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the new value of saving is

• A) 0.
• B) $250.
• C) $750.
• D) $1000.

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Definitions:

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The early stage of development in multicellular organisms after fertilization and before becoming a fetus, characterized by rapid cell division and differentiation.

Fetus

A developing mammal or human after the embryonic stage and before birth.

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A sexually transmitted bacterial infection that can cause serious health problems if not treated.