If net taxes were lowered from $5,000 to $1,000 . the marginal propensity to consume is 0.75, and autonomous consumption spending is $10,000 . by how much would consumption increase?
a. $3,000
b. $1,250
c. $7,500
d. $3,750
e. $750
A
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A rightward shift of the aggregate demand curve leads to
A) an upward movement along the short-run Phillips curve. B) neither a movement along nor a shift in the short-run Phillips curve. C) a downward movement along the short-run Phillips curve. D) a leftward shift of the short-run Phillips curve. E) a rightward shift of the short-run Phillips curve.
The demand for farm goods is income inelastic if the percentage change in quantity demanded is __________ the percentage change in __________
A) greater than; income B) equal to; income C) less than; income D) greater than; revenue E) less than; revenue
Income mobility is:
A. how likely the income associated with each job in the country will change in relative terms. B. how likely the income associated with each job in the country will increase over time. C. how much income is stored in offshore banks. D. the ability to improve one's economic circumstances over time.
An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by:
A. $11,000 B. $10,800 C. $9,600 D. $6,000