If Real Disposable Income Increases, the Average Propensity to Consume

question 150

Multiple Choice

If real disposable income increases, the average propensity to consume will

• A) initially increase, and then decrease.
• B) remain constant.
• C) increase.
• D) decrease.

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Definitions:

Babylonian Captivity

A period in Jewish history from 586 to 538 BCE when a number of people from the ancient Kingdom of Judah were captives in Babylonia.

City-State

An independent, self-governing city that also possesses surrounding territories, forming an independent political entity.

Ottoman Empire

A former Turkish empire that was founded about 1300 by Osman and reached its peak during the 16th and 17th centuries, covering parts of Europe, Asia, and Africa.

Foreign Invasions

Acts of armed forces from one country entering into another country with the intention to conquer or occupy territories.