From 2002 to 2003, personal income rose by $352 billion. If the MPC = 0.9, then personal consumption expenditures rose by
a. $31.68 billion
b. $35.2 billion
c. $3.52 billion
d. $387.2 billion
e. $316.8 billion
E
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Which of the following statements is correct?
a. About 25 percent of the U.S. population earns an income below the poverty line. b. About 50 percent of blacks earn an income below the poverty line. c. Since 1980 the fraction of persons below the poverty level has risen sharply. d. None of these.
Which of the following assets is most liquid?
a. funds in a checking account b. a car c. ten acres of land d. a television
Which of the following is included in M1?
a. savings accounts b. money market deposit accounts c. money market mutual funds d. travelers' checks e. None of the above are included.
A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move
a. necessarily raises GDP. b. necessarily decreases GDP. c. doesn't change GDP because gambling is never included in GDP. d. doesn't change GDP because in either case his income is included.