If your disposable personal income increases from $33,000 to $41,000 and your consumption increases from $8,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.
c
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The Keynesian economic framework is based on the assumption that prices and wages are sticky and do not adjust quickly
a. True b. False Indicate whether the statement is true or false
Which of the following would be most likely to cause an increase in current aggregate demand in the United States?
a. increased fear that the U.S. economy was going into a recession b. an increase in the real interest rate c. sharp increase in the value of stocks owned by Americans d. a recession in Canada, Mexico, and Western Europe
How do central banks, like the U.S. Federal Reserve, contribute to the welfare of a society?
What will be an ideal response?
A decrease in government spending will cause a(n):
A. increase in the quantity of real domestic output demanded. B. decrease in the quantity of real domestic output demanded. C. increase in aggregate demand. D. decrease in aggregate demand.