Everything else held constant, if disposable income increases by 200 and consumption expenditure increases by 150, the mpc is
A) 0.
B) 0.15.
C) 0.5.
D) 0.75.
D
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Refer to the above figure. The figure represents the consumption function for a consumer. Point D represents
A) autonomous consumption. B) saving. C) dissaving. D) zero saving.
If consumption is $800 when income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True b. False Indicate whether the statement is true or false
The ________ posits that trade flows between countries will be larger as the economic sizes of the two countries are larger and the geographic distance between the two countries is smaller.
A. gravity model B. Heckscher-Ohlin model C. Stolper-Samuelson theorem D. theory of absolute advantage
The costs associated with the negotiation and enforcement of an agreement are
A) property costs. B) resource factor costs. C) transaction costs. D) opportunity costs.