The marginal propensity to consume (MPC) is
A. the percentage of real disposable income consumed.
B. the percentage of an additional dollar of real disposable income that will go toward additional real consumption spending.
C. the percentage of real disposable income saved.
D. the rate at which real consumption spending changes over time.
Answer: B
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Which of the following is the most likely to be a variable factor of production at a university?
A. The size of the student union. B. The size of the football stadium. C. The location of the university. D. The number of librarians.
Rational ignorance says that voters will
A) understand the technology before voting on defense. B) vote on issues without having complete information. C) gather information on issues that are not important. D) not vote on issues that they do not understand.
Refer to Figure 13-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
________ than the economically efficient quantity of a good or service will be produced in private markets where there are ________
A) More; positive externalities B) More; social benefits C) Less; positive externalities D) Less; social costs