When disposable income is $8 trillion, consumption expenditure is $5 trillion; when disposable income is $5 trillion, consumption expenditure is $3 trillion. The MPC is
A) (5 - 3 ) ÷ (8 - 5 ) = 0.667.
B) (8 - 5 ) ÷ (5 - 3 ) = 1.333.
C) (5/8 + 3/5 ) = 1.225.
D) (5 + 3 ) ÷ (8 - 5 ) = 2.667.
E) (5 + 3 ) ÷ (8 + 5 ) = 0.615.
A
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Compared to the poverty rate for non-Hispanic whites, the poverty rate for Hispanics is almost _______.
Fill in the blank(s) with the appropriate word(s).
Which of the following would suggest that monetary policy is restrictive?
a. falling commodity prices b. depreciation of the foreign exchange value of the dollar c. a rising M1 money supply d. an increase in the rate of inflation
Refer to Figure 6.4. If the price of computers is $1,000, then consumer surplus is given by the area represented by:
A. c + d.
B. b.
C. b + c.
D. a + b + e.
A flat-rate tax structure is one:
a. whose marginal rate increases as income increases. b. whose average rate equals the marginal rate. c. that has graduated rates. d. whose marginal rate decreases as income increases.