The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
A. 1.
B. 0.
C. the interest rate.
D. the marginal propensity to invest (MPI).
Answer: A
You might also like to view...
To eliminate a recessionary gap, what fiscal policy should the government pursue?
What will be an ideal response?
Illustrate graphically the effect the credit market crisis in the United States in 2008 had in the market for existing single-family homes
Assuming the demand for existing single-family homes is relatively inelastic, what is likely to happen to the total revenues of home sellers as a result of the credit market crisis?
Corrective taxes are often difficult to implement because _____
a. those affected by the externality are often loathe to use political means to implement the tax b. those creating the externality threaten to shut down c. those who suffer from the externality refuse to talk about it d. the creator of an externality will use political means to try to prevent the tax
If U.S. consumers increase their spending on hybrid cars by 60 percent, and 60 percent more hybrid cars are produced, this is known as the
A) majority rule. B) proportional rule. C) government rule. D) profit rule.