When disposable income equals $800 billion, planned consumption expenditure equals $600 billion, and when disposable income equals $1000 billion, planned consumption expenditure equals $760 billion. What is the marginal propensity to save?
a) 0.8
b) 0.64
c) 0.25
d) 0.2
d) 0.2
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A Business Wire report shows that sales at Target stores increased in 2012 compared to the previous year. (Source: Business Wire, August 30, 2012 ) Incomes grew slightly between 2011 and 2012
Using that fact and the sales data given above means that Target definitely is selling goods and services that A) are normal. B) are inferior. C) have an income elasticity of zero. D) have an income elasticity of 1.
Adverse selection and moral hazard are examples of:
A) transaction costs B) information cost C) symmetric information D) financial market efficiency
What mechanism assures that firms produce outputs that consumers actually desire?
a. governmental regulations on the mix of outputs b. altruism c. the desire for profit d. a desire to serve others without thought of reward e. All of the above are correct.
If the economy grew at 7 percent from 2015 to 2016 and real GDP was 400 in 2015, what was real GDP in 2016?
A. 393 B. 400 C. 407 D. 428