The marginal propensity to consume is
a) consumption divided by disposable income
b) national income divided by consumption
c) the change in national income caused by a $1 change in consumption
d) the change in consumption caused by a $1 change in disposable income
e) the percentage increase in consumption caused by a 1% decrease in savings
d) the change in consumption caused by a $1 change in disposable income
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If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent. B) income is unequally distributed. C) more of the nation's income is received by the highest 20 percent of families than by the lowest percent. D) the income received by each 20 percent of families is 20 percent of the total income.
If the actual real wage exceeds the equilibrium wage, there will be an excess supply of labor
a. True b. False
The distinctive feature of a progressive tax is that the dollar value of taxes paid rises as income rises
Indicate whether the statement is true or false
In the above figure, along which range would total revenue rise by lowering prices?
A. below point e B. between point d and point e C. between point c and point d D. between point a and point b