The average propensity to consume is the
A) percentage of total disposable income consumed.
B) ratio of changes in planned consumption to changes in real disposable income.
C) rate at which real disposable income changes as planned consumption changes.
D) slope of the consumption function.
A
You might also like to view...
The figure above shows an education market in which the government is providing households with vouchers. Excluding the voucher, what do the students pay the schools?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) $0
Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Northland's real GDP per person will always be between 1 and 2 percent greater than Southland's. B. Northland's real GDP per person will decline until it equals Southland's. C. Southland's real GDP per person will eventually be greater than Northland's. D. Southland's real GDP per person will always be exactly 2 percent less than Northland's.
According to economist Jean-Pierre Dube, a 10 percent increase in the price of a twelve-pack of Mountain Dew will lead to a ______ percent increase in the sales of twelve-packs of Pepsi.
a. 10 b. 7.7 c. –5 d. –8.2
Pegging the bond market in 1942–45 meant that World War II (1941–45)
(a) would be financed by free-market interest-rate determination. (b) fixed high interest rates. (c) fixed low interest rates. (d) sent high interest rates floating above the peg.