If the consumption function is expressed as C = a + mpc × YD, then "a" represents
A) autonomous consumer expenditure.
B) the marginal propensity to consume.
C) the expenditure multiplier.
D) disposable income.
A
You might also like to view...
Which of the following episodes would most likely contain an externality?
A) You cannot afford to buy groceries. B) You decide to grow your own vegetables in your backyard where no one else can see them. C) You decide to grow flowers in your front yard where everyone else can see them. D) You eat all the vegetables you grow yourself.
Many people consider lump-sum taxes to be unfair to low-income taxpayers
a. True b. False Indicate whether the statement is true or false
Which of the following is a characteristic of a general? partnership?
A. Partnerships do not have to pay? taxes, but a corporation does. B. The partners have joint liability for the? firm's financial obligations. C. It is a corporation. D. Only one partner can make decisions. E. It is owned by one individual.
Dollar Bank is currently loaned up. If the required reserve ratio is lowered
A. Dollar Bank will have excess reserves that it can lend out. B. Dollar Bank's net worth will increase. C. Dollar Bank will still be loaned up because it did not receive any additional deposits. D. Dollar Bank's actual reserves will increase, but it will still be loaned up.