The marginal propensity to consume (MPC) is calculated by which formula?
A. MPC = change in DI divided by change in C
B. MPC = change in GDP divided by change in DI
C. MPC = change in C divided by change in DI
D. MPC = change in C divided by change in GDP
Answer: C
You might also like to view...
Which of the following statements about the Herfindahl-Hirschman Index is CORRECT?
I. It is the square of the percentage market share of each firm summed over the largest 50 firms (or summed over all the firms if there are fewer than 50 ) in a market. II. A small index is indicative of a high degree of competition. III. The index is used to measure the degree of competition. A) I only B) I, II only C) I, III only D) I, II, and III
Based on the table and information in the previous question, which of the following is TRUE?
A) George prefers to make $15,000 with certainty than make the investment. B) George prefers making the investment than to make $15,000 with certainty. C) George is indifferent between making $15,000 with certainty and making the investment. D) As the investment has risk George should not make it under any circumstances.
What is the present value of $1 that will be paid to you in 6 years if the interest rate is 10%? Work it out to the nearest tenth of a cent.
What will be an ideal response?
Suppose the velocity of money decreases because consumers become more reluctant to spend. If the money supply is unchanged and prices can't adjust in the short run (sticky prices), then according to the quantity theory of money, what must happen to short-run output?
What will be an ideal response?