The Amount by Which Consumption Increases When After-Tax Income Increases

question 28

Multiple Choice

The amount by which consumption increases when after-tax income increases by $1 is called the:

• A) marginal propensity to consume.
• B) marginal consumption revenue.
• C) variable propensity to consume.
• D) consumption multiplier effect.

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Definitions:

Stages

Distinct periods or phases in a process of development or a sequence of events.

Collective Unconscious

A concept in psychology proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Latent Memory Traces

Subconscious remnants of experiences that have been encoded into long-term memory but are not currently active or retrievable.

Ancestral Past

Refers to events, conditions, or genealogies related to one’s ancestors, influencing genetic traits and cultural or familial inheritances.