Suppose the marginal propensity to consume is 0.80 and taxes decrease by $10 billion. Which of the following is true?
a. Disposable income and consumption fall by $10 billion
b. Disposable income and consumption rise by $10 billion
c. Disposable income rises by $10 billion and consumption rises by $8 billion
d. Disposable income falls by $10 billion and consumption falls by $8 billion
e. Disposable income rises by $10 billion and consumption falls by $8 billion
C
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Economists argue that the union wage advantage
A) has been estimated to be 100% in the private sector. B) in the private sector is a 4% increase in wages for union workers over nonunion workers. C) reached its height in 2000 in the private sector. D) has been close to zero since World War II in the private sector.
A demand curve is derived from
A. consumer's income. B. a demand schedule. C. the production possibilities curve. D. an equilibrium.
Acme is a perfectly competitive firm. It has the total cost schedule given in the above table. Acme's product sells for $8.00 per unit. What amount of output is the most profitable and what is Acme's economic profit or economic loss?
What will be an ideal response?
Within different price ranges along a demand curve, price elasticities of demand are
a. constant across all price ranges b. different, and greater, equal to, or less than one depending on the price range c. positive or negative, depending upon whether they are elastic or inelastic d. always less than one because total revenue increases when price falls e. always greater than one because total revenue increases when price falls