According to the absolute income hypothesis, the marginal propensity to consume
a. decreases as national income increases
b. increases as national income increases
c. is equal to one
d. is constant as national income increases
e. is equal to the marginal propensity to save
A
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Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Substitutes
What will be an ideal response?
An example of an intermediate good would be a(n)
A. paper used in this edition of the textbook. B. the appliance you use to heat up your lunch.. C. the used car you purchase. D. the suit you purchased on Black Friday and wore for New Year’s Eve.
The opportunity cost of going to college full time away from home includes
A. the time you could have spent with parents back home. B. the funds you would have saved if you had not paid the tuition. C. the income you could have earned from a full-time job. D. All of these are correct.