Suppose that disposable income is $1,000 consumption is $700 and the MPC is 0.6. If the disposable income increases by $100, consumption and savings will equal which of the following?
A) $420/$280
B) $600/$400
C) $660/$320
D) $660/$440
E) $760/$340
Ans: E) $760/$340
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Figure 4.3 illustrates the demand for tacos. An increase in the number of consumers in the market would bring about a movement from
A) point a to point b. B) point c to point a. C) D2 to D1. D) D0 to D2.
If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
When a tax is placed on a product, the price paid by buyers
a. rises, and the price received by sellers rises. b. rises, and the price received by sellers falls. c. falls, and the price received by sellers rises. d. falls, and the price received by sellers falls.
The trade-to-GDP ratio is calculated by
A) exports divided by GDP. B) imports divided by GDP. C) exports plus imports divided by GDP. D) exports minus imports divided by GDP.