) If consumption expenditures for a household increase from $1000 to $1800 when disposable income rises from $1000 to $2000, the marginal propensity to consume is
What will be an ideal response?
0.8
You might also like to view...
Since 1948, the labor force participation rate for adult men has ________ and for adult women has ________
A) increased; decreased B) decreased; decreased C) increased; increased D) decreased; increased
Refer to Table 20-8. Suppose that the data in the table above reflect the price levels in the economy. What is the inflation rate in between 2015 and 2016?
A) 2% B) 5% C) 10% D) 12% E) 20%
In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above
When the Fed makes a discount loan, the impact on the Banking System's balance sheet will reflect:
A. an increase in assets and a decrease in liabilities. B. an increase in assets and liabilities. C. an increase in liabilities with no change in assets. D. a decrease in assets and an increase in liabilities.