The marginal propensity to consume equals
A) consumption expenditure divided by the change in disposable income.
B) the change in consumption expenditure divided by disposable income.
C) the change in consumption expenditure divided by the change in disposable income.
D) consumption expenditure divided by disposable income.
E) the change in autonomous consumption divided by the change in induced consumption.
C
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Refer to Scenario 12.2. In this game, if the players successfully coordinate and Jerome ends up playing his weak strategy, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
How can the Cambridge equation be restated according to Friedman's money demand theory?
a. Md = k(rB, rE, rD)Py b. Md = k/Py(rB, rE, rD) c. Md = Py/k(rB, rE, rD) d. Md = (rB, rE, rD)Py/k
Along an indifference curve
A. the price ratio is constant. B. the ratio of the marginal utilities is constant. C. the MRS is constant. D. all of the above E. none of the above
John Maynard Keynes attacked the classical economic theory in his book The General Theory of Employment, Interest and Money, published in 1936. Summarize Keynes’ criticisms and explain why the timing of the book is so significant.
What will be an ideal response?