Data on after-tax income and consumption spending for the Adam Smith family are given below:After-Tax IncomeConsumption Spending$9,000$18,100$14,000$22,600$19,000$27,100$24,000$31,600Based on these data, the Adam Smith family has a marginal propensity to consume equal to:
A. 0.6.
B. 0.9.
C. 0.8.
D. 0.75.
Answer: B
You might also like to view...
In many communities across the country it is very difficult for firms to hire sufficient numbers of entry level workers. If firms do not wish to raise money wages, what else might they do to attract workers?
Although asset price bubbles seem obvious after the fact, it is much more difficult to draw such a conclusion before the fact
a. True b. False Indicate whether the statement is true or false
In a closed economy taxes are $750 billion, government transfers are $400 billion, government expenditures are $500 billion, and investment is $400 billion. What are private saving, public saving and national saving?
Which is FALSE about perfect competition?
A) There are numerous sellers. B) Market entry and exit is unrestricted. C) There is no ability to set price. D) There is considerable product differentiation.