Suppose That John Allocates $10,000 of His Disposable Income for Necessities

question 103

Multiple Choice

Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:

• A) $10,000.
• B) $40,000.
• C) $32,000.
• D) $35,000.

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Definitions:

Summarizing

The act of creating a concise and comprehensive version of a larger document or discussion, capturing essential information and main ideas.

Next Meeting

A scheduled future gathering of a group or team to discuss or address specific topics, questions, or tasks.

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Achievements or completed tasks that demonstrate skill, proficiency, or success.

Consensus

A general agreement among the members of a group or the outcome of that agreement.