Suppose Consumption Is $7,500 When Income Is $4,000 and the MPS

question 205

Multiple Choice

Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income increases to $6,000, consumption is

• A) $8,050.
• B) $8,300.
• C) $8,700.
• D) $9,500.

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Definitions:

Atom

The smallest part of an element that contains all the properties of that element.

Current Flows

Current flows refer to the movement of electric charge carriers, such as electrons, through a conductor or circuit, driven by a voltage difference.

Direction

In electrical and electronic contexts, direction can refer to the path in which current flows or the orientation of a magnetic or electric field.

Valence Electrons

Electrons located in the outer orbit of an atom.