If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
a. 0.9.
b. 0.8.
c. 0.75.
d. 0.6.
a. 0.9.
You might also like to view...
All of the following will cause a shift in the supply of jeans EXCEPT
a. a decrease in the prices of jeans. b. a decrease in the number of jean manufacturers. c. an increase in the cost of producing jeans. d. a per-unit government subsidy on the production of jeans.
Suppose that a bond promises to pay $107 next year but the interest rate falls from 7 percent to 3 percent per year. How much will the price of the bond be and why?
What will be an ideal response?
How is dollarization different from monetary union?
What will be an ideal response?
Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China.
b. Mercedes-Benz begins to produce and sell cars in Mississippi.
c. An American investor buys 100 shares of Ford stock.
d. An American investor purchases 100 shares of Mercedes-Benz stock.