In the above table, the marginal propensity to save when disposable income changes from $5,000 to $6,000 is
A. 0.8.
B. -0.2.
C. 0.2.
D. 0.1.
Answer: C
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A. rule of force B. rule of one C. rule of man D. rule of law
Utilitarianism is the belief in a completely equal distribution of income for all people
Indicate whether the statement is true or false
According to classical theory, desired saving always equals investment due to changes in
A) prices. B) wages. C) the interest rate. D) taxes.
After a loan is made, the:
a. M2 money supply rises until the loan is repaid. b. M2 money supply rises until the loan is spent. c. M2 money supply rises until the loan is cleared. d. M2 money supply does not change until the loan is spent. e. M2 money supply does not change until the loan is cleared.