If real consumption spending increases by $400 billion each time real disposable income rises by $1,000 billion, the marginal propensity to consume is
a. 40
b. 4
c. 0.4
d. 0.04
e. 0.004
C
You might also like to view...
The theory of expected utility theory
A) predicts all actions involving uncertainty. B) predicts no actions involving uncertainty. C) predicts some, but not all, actions involving uncertainty. D) predicts only one in three actions involving uncertainty.
The supply of loanable funds comes from all the following, but:
A. businesses. B. individuals. C. government. D. borrowers.
If an economist were to disregard unionized government employees, then current U.S. labor market statistics would show that _________
a) 10% of the workers employed by private firms work for a union. b) 80% of the workers employed by private firms aren't unionized. c) 8% of the workers employed by private firms work for a union. d) 98% of the workers employed by private firms aren't unionized.
In which of the following situations will market clearing price decrease and the equilibrium quantity increase?
A. an increase in demand with no change in supply B. an increase in supply with no change in demand C. a decrease in supply with no change in demand D. a decrease in demand with no change in supply