The marginal propensity to consume is defined as the:
a. fraction of total income not spent on consumption.
b. proportion of any change in income that is spent on consumption.
c. fraction of total income spent on consumption.
d. fraction of a change in income that is saved.
b
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Why might network externalities result in products that contain inferior technologies?
What will be an ideal response?
From any point below the current LM curve, money market equilibrium can be restored by some combination of a ________ income and a ________ interest rate that ________ the demand for money
A) higher, higher, increases B) higher, lower, increases C) higher, lower, reduces D) lower, higher, increases E) lower, higher, reduces
To understand why wages are so low and the process by which wages are determined, we must focus on the supply side of the labor market
Indicate whether the statement is true or false
Suppose that for a given good demand increases and supply increases at the same time. If demand increases by a lesser amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; falls B) falls; falls C) rises; rises D) falls; rises