If Don Spends $10 000 on Consumption When He Has

Multiple Choice

If Don spends $10 000 on consumption when he has no disposable income and then spends 75 cents out of every dollar of disposable income he earns on consumption,which of the following statements about Don's consumption is the most accurate?

A) Don's MPC equals 0.75.
B) Don's APC will rise as his income rises.
C) Don spends $20 000 on consumption when his disposable income is $20 000.
D) Don's APC equals 0.75.