If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.60. b. 0.75. c. 600.00. d. 0.40. e. 0.50.

a. 0.60.

Explanation:

Marginal Propensity to Consume is a metric which enables to measure the increase in consumer spending when there is increase in consumer disposable income. The proportion of disposable income with increase in spending is known as marginal propensity to consume.

The correct answer is 0.60. This is calculated by dividing consumption by the spending.

Marginal propensity to consume = $900 / $1,500

Marginal propensity to consume = 0.60.

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability