If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $2,000 to $4,000, it can be inferred that the MPC equals
A. 0.5.
B. 0.75.
C. 0.4.
D. 0.6.
Answer: B
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If a firm produces in a perfectly competitive output market,
a. then it demands its resources in perfectly competitive input markets b. then it demands labor in a perfectly competitive labor market c. the type of market in which it demands labor may be perfectly competitive or imperfectly competitive d. the labor demand curve is the same as its product demand curve e. the labor demand curve facing the firm is perfectly elastic
People who own preferred stock have voting privileges in the corporation
Indicate whether the statement is true or false
If the money multiplier is approximated to be 2, then the reserve ratio must be:
A. 5 percent. B. 50 percent. C. 2 percent. D. 20 percent.
A pest attack destroys half of the California navel orange crop. Simultaneously, the price of kiwi fruit, a substitute for navel oranges, falls. How would you expect these two events to affect the equilibrium in the California navel orange market?
a. The demand for navel oranges would decrease but the supply would remain unchanged, resulting in a lower market equilibrium price and quantity. b. The supply would decrease and the demand would increase, resulting in a higher market equilibrium price and an indeterminate change in market equilibrium quantity. c. Both supply and demand would decrease, resulting in a decrease in equilibrium quantity and an indeterminate change in price. d. Both supply and demand would increase, resulting in an increase in equilibrium quantity and an indeterminate change in price.