When Jack's Income Increases by $1,000,he Spends an Additional $850

question 183

True/False

When Jack's income increases by $1,000,he spends an additional $850 dollars.This implies that his marginal propensity to consume is 0.85.

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Definitions:

Universal Basic Income

A financial program where a government provides all citizens with a regular, unconditional sum of money, regardless of employment status or wealth.

Household Receives

Refers to the income or goods that a household obtains, which may come from various sources such as wages, investments, or government programs.

Gini Ratios

A measure of income inequality within a population, represented by a value between 0 (perfect equality) and 1 (perfect inequality).

Income Inequality

The unequal distribution of income among individuals or groups within a society, often leading to social and economic challenges.