Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is
A) .25.
B) .75.
C) $1,000/$750 = 1.33.
D) 1/.25 = 4.
B
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The marginal propensity to consume (MPC) is the fraction of additional income that is spent
Indicate whether the statement is true or false
Which of the following statements correctly differentiates between positive and normative economics?
A) Positive economics is descriptive, whereas normative economics is advisory. B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do. C) Positive economics is based on judgments, whereas normative economics is not. D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.
If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by ______ percent per year
A. 7 B. 10 C. 12 D. 14
Incorporated firms first began appearing in the 1850s
Indicate whether the statement is true or false