In the above figure, when real disposable income is less than 600, then
A. the MPC will fall.
B. consumption is less than disposable income.
C. consumption is the same as disposable income.
D. consumption is more than disposable income.
Answer: D
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Monetary policy refers to:
A. policy directed toward increasing exports and reducing imports. B. the determination of the nation's money supply. C. government policies aimed at changing the underlying structure or institutions of the economy. D. decisions to determine the government's budget.
If, when a firm doubles all its inputs, its average cost of production increases, then production displays
A) economies of scale. B) diminishing returns. C) diseconomies of scale. D) declining fixed costs.
Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output?
A) Price = average revenue. B) Marginal revenue = marginal cost. C) Price > marginal cost. D) Profit = (AR-ATC) x Q.
Early nineteenth century banks primarily
(a) enabled small savers to buy shares in a diversified portfolio of investments. (b) accepted and managed checkable deposits. (c) provided a broad range of financial services. (d) relied on a federal safety fund in times of well spread crisis.