If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals
A. 0.75.
B. 0.60.
C. 0.80.
D. 0.68.
Answer: A
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(a) They withdrew all investments in colonial America. (b) They continued investing in colonial America. (c) They discouraged individuals in other countries from investing in colonial America. (d) They did none of the above.
If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 5 percent, then the
A) real rate of interest is equal to the nominal rate. B) real rate of interest is less than the nominal rate. C) nominal rate is greater than the real rate of interest. D) investment demand schedule will shift upward.
Pricing policy can serve as a barrier to entry
Indicate whether the statement is true or false
Vote trading in order to pass legislation is commonly called _____
Fill in the blank(s) with the appropriate word(s).