Everything else held constant, if consumption expenditure falls by 160 when disposable income falls by 200, the mpc is

A) 0.
B) 0.2.
C) 0.4.
D) 0.8.


D

Economics

You might also like to view...

Suppose a market is in equilibrium. If a price ceiling is set by the government below the equilibrium price, which of the following is most likely to occur?

a. a decline in quantity demanded
b. a surplus
c. a shortage
d. an increase in the quantity being sold
e. a new equilibrium

Economics

Effective protection will be greater if, all else equal,

a. imported inputs are a small percentage of the final product b. tariffs on imported inputs are high c. tariffs on the final product are low d. quotas are added to tariffs on imported inputs e. none of the above

Economics

What is the best response of Vendor B to Vendor A pricing high?

a. Also price high b. Price low c. Leave the market d. All of the above

Economics

Actual investment spending does not include

What will be an ideal response?

Economics