The marginal propensity to consume is
A. The percentage of total disposable income spent on consumption.
B. The fraction of each additional dollar of disposable income spent on consumption.
C. Total consumption in a given period divided by total disposable income.
D. That part of the average consumer dollar that goes to the purchase of final goods.
Answer: B
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Consider the statement: "When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." The implied price elasticity of demand by foreigners for a British education is (in absolute value)
A. less than 1. B. equal to 1. C. greater than 1.5. D. between 1.0 and 1.5.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.
The higher the interest rate, the greater the preference for liquidity
a. True b. False Indicate whether the statement is true or false
Investment is a positive function of the national income level
Indicate whether the statement is true or false