If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
a. increase consumption by $7,500.
b. increase consumption by $2,500.
c. decrease consumption by $7,500.
d. decrease consumption by $2,500.
c. decrease consumption by $7,500.
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If a one percent increase in the price of bananas leads to a one percent decrease in the quantity of bananas demanded, then the demand for bananas is
A) elastic. B) inelastic. C) unit-elastic. D) perfectly inelastic.
The least scrutiny of management’s operations occurs when ____ is the method used to obtain corporate financing.
A. stock issue B. bond issue C. plowback D. watering
Which of the following is a determinant of market supply but not the supply curve of an individual firm?
A. Expectations. B. Technology. C. The price of factor inputs. D. The number of firms in the market.
An economic populist movement
A) is likely to create long-term economic stability. B) favors promotion of export-based industries and fiscal austerity. C) is less likely to use expansionary policy due to inflation risks. D) uses economic tools to obtain support from labor and domestically oriented businesses.