If the marginal propensity to consume is 0.75, then a $100 increase in disposable income leads to a ________ increase in consumption.
A. $75
B. $25
C. $133
D. $13.33
Answer: A
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Marginal social cost is equal to
A) the amount people who buy a product pay for another unit. B) whatever producers have to pay to produce output. C) the sum of marginal private cost and the marginal external cost. D) the average of marginal private cost and the marginal external cost. E) None of the above answers is correct.
Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the quantity of water and the quantity of hamburgers that will maximize the consumer's total utility?
A) 5 bottles of water and 4 hamburgers B) 4 bottles of water and 4 hamburgers C) 1 bottle of water and 6 hamburgers D) 6 bottles of water and 6 hamburgers
One implication of the median-voter model is that at any point in time, most voters will:
A. Be happy with the amount of government involvement in the economy B. Find government involvement in the economy to be too much C. Find government involvement in the economy to be too little D. Be unhappy with the amount of government involvement in the economy
The International Monetary Fund lends money to countries to
A. finance their international transactions. B. stabilize their exchange rates. C. promote their economic development. D. Both A and B are correct.