If income increased by $20,000 . investment spending is fixed at $5,000 . government purchases are fixed at $10,000 . net exports are fixed at $500, and aggregate expenditure increases by $15,000 . what is the marginal propensity to consume (MPC)?
a. 0.25
b. 0.75
c. 0.33
d. 0.50
e. 0.70
B
Economics
You might also like to view...
During recessions, the change in real GDP is:
A. always negative. B. most often negative, but occasionally positive. C. always positive. D. most often positive, but occasionally negative.
Economics
Perfect competition requires a non-standardized product.
Answer the following statement true (T) or false (F)
Economics
In 2010, the debt-to-GDP ratio increased to roughly the same ratio as the 1990s
a. True b. False Indicate whether the statement is true or false
Economics
SW also ranked ___ among big airlines in baggage handling.
Fill in the blank(s) with the appropriate word(s).
Economics