The marginal propensity to consume:
A. is closely linked to the multiplier effect of government spending.
B. is the amount by which consumption increases when after-tax income increases by $1.
C. is a value between 0 and 1.
D. All of these are true.
Answer: D
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Use the following table to answer the next question.Current AccountFinancial AccountCapital Account-$753,438 $30,696This country has a ________.
A. trade deficit B. deficit in the financial account C. trade surplus D. deficit in the capital account
The opportunity cost of holding money increases when
A) the purchasing power of money rises. B) the nominal interest rate rises. C) the price level falls. D) consumers' real incomes increase.
Price discrimination is possible in which of the following market structures?
a. perfect competition b. monopoly c. oligopoly d. monopolistic competition A) a, b, c, and d B) c and d only C) b and c only D) b, c, and d only
The use of trade barriers to enforce standards abroad raises all of the following concerns EXCEPT
A) the potential deadweight losses in consumption and production at home. B) the lack of agreement over specific content of standards. C) the potential for the use of trade barriers to erupt into a bigger trade war. D) the difficulty of knowing whether some of the concerns are over standards or veiled protectionism. E) only small countries may be able to use trade barriers effectively.