Consider the Following Information for a Family

question 58

Multiple Choice

Consider the following information for a family. The income for the family is $58,000; if the MPC is 0.6, and income increases by $13,000, then the increase in savings for the family is:

• A) $5,400.
• B) $5,200.
• C) $420.
• D) $7,800.

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Definitions:

Intellectual Disability

"A condition of limited mental ability in which an individual has a low IQ, usually below 70 on a traditional intelligence test, and has difficulty adapting to everyday life."

Limited Mental Ability

A state or condition where an individual's cognitive functions are below average and restrict daily activities and learning capacity.

Everyday Life

Pertains to daily activities, routines, behaviors, and interactions across various contexts and environments.

Organic Intellectual Disability

An intellectual disability caused by physical damage to the brain or abnormal brain development, resulting in cognitive impairments.