If the marginal propensity to consume was 0.9, it would mean that:
A. consumers spend $1 out of every $10 of additional disposable income.
B. consumers save $9 out of every $10 of additional disposable income.
C. consumers spend $9 out of every $10 of additional disposable income.
D. people should save more.
Answer: C
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When revenue is less than total cost but more than variable cost it implies that:
a. the firm is enjoying positive economic profits. b. the firm is earning normal profits. c. the firm can cover its variable cost and a part of its fixed costs. d. the firm is unable to cover its costs and should shut down. e. the firm is able to cover both its fixed and variable costs.
In order to maximize profit, a perfectly competitive firm should select the level of output where
a. marginal revenue equals price b. marginal cost equals marginal revenue c. price exceeds marginal cost d. price exceeds marginal revenue e. total revenue equals total cost
If Macland’s growth rate is consistently 8 percent, how many years will it take to double its standard of living?
a. 2 years b. 8 years c. 9 years d. 12 years
The OPEC oil cartel has difficulty maintaining high prices in the long run because the supply of oil is more inelastic in the long run than in the short run
a. True b. False Indicate whether the statement is true or false