If a $1,000 Increase in Income Leads to an $800

question 77

Multiple Choice

If a $1,000 increase in income leads to an $800 increase in consumption expenditures,then the marginal propensity to consume is

• A)0.2 and the multiplier is 1.25.
• B)0.8 and the multiplier is 5.
• C)0.2 and the multiplier is 1.25
• D)0.8 and the multiplier is 8.

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Definitions:

Severe Headache

An intense and disabling pain in the head that can have various causes.

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Outcome behaviors are the observable actions taken by individuals as a result of specific interventions or influences, often assessed to evaluate the effectiveness of a strategy or treatment.

Intervention

An action taken to improve a situation, especially in social, health, or educational settings.

Resourcefulness

The ability to find and use available resources effectively to solve problems or achieve goals.