If the marginal propensity to consume (MPC) decreases, then
A) the marginal propensity to save (MPS) decreases.
B) the multiplier decreases.
C) the multiplier increases.
D) MPC + MPS is less than 1.
B
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The per-unit burden of the tax on sellers is
A. $8 B. $14 C. $6 D. $10
Refer to Figure 11.3. Assume aggregate demand is represented by AD3 and full-employment output is $5.6 trillion. The economy confronts an inflationary GDP gap of
A. $600 billion. B. $400 billion. C. $800 billion. D. $200 billion.
The steel and automobile industries would be examples of which market model?
A. Oligopoly B. Pure competition C. Pure monopoly D. Monopolistic competition
In an hour Jane can solder 50 connections or inspect 20 parts while Jim can solder 25 connections or inspect 20 parts in an hour
A) Jane has a comparative advantage over Jim in both soldering and inspecting. B) Jane has a comparative advantage over Jim in soldering while Jim has a comparative advantage in inspecting. C) Jim has a comparative advantage over Jane in soldering while Jane has a comparative advantage in inspecting. D) Jim had a comparative advantage over Jane in both soldering and inspecting.