If consumption increases by $9 when after-tax disposable income increases by $10, the marginal propensity to consume (MPC) equals
A. 9.
B. 0.9.
C. 1.
D. 0.1.
Answer: B
You might also like to view...
Output per person on a country level is another way to think about:
A. real GDP per capita. B. nominal GDP. C. productivity. D. GDP growth rates.
A head tax is
a. always regressive. b. an indirect tax on the value of property. c. the primary tax used by U.S. municipalities to raise revenue. d. All of the above are correct.
Last year a country had $700 billion of saving and $900 of investment. What was its net capital outflow? How is it possible for a country to have investment that exceeds saving?
Adjudication reduces problems created by negative externalities by
A) assigning liability to the party most able to pay (the deep pocket).
B) balancing marginal social benefits against marginal social costs.
C) discovering who has what rights.
D) making more accurate private benefit-cost analyses.
E) measuring externalities more precisely.