Bill's disposable income goes from $100,000 in 2010 to $200,000 in 2011, and his consumption spending goes from $80,000 in 2010 to $140,000 in 2011 . Which of the following statements about Bill is true?
a. Bill's MPC rose between 2010 and 2011.
b. Bill's MPC is equal to 0.7
c. Bill's MPC is equal to 0.6.
d. Both (a) and (b) are true.
c
You might also like to view...
Monopolies may earn economic losses in the long run
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope. b. There is an inverse relationship between the quantity of money demanded and the interest rate. c. According to the quantity theory of money, any change in the money supply will have no effect on the price level. d. All of these are true.
If the MPC is 0.80, and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?
A. $240 million. B. $200 million. C. $180 million. D. $40 million.
Taxi medallions were issued in New York City to:
A. increase the wages of taxi drivers. B. help new immigrants find jobs. C. raise revenue for the city. D. help commuters afford transportation.