The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:
a. GDP.
b. disposable personal income.
c. saving.
d. none of these.
b
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The concept of net domestic investment refers to ________.
A. the difference between the market value and book value of outstanding capital stock B. the amount of machinery and equipment used up in producing the GDP in a specific year C. gross domestic investment less net exports D. total investment less the amount of investment goods used up in producing the year's output
What does the phrase "internalizing an external cost" mean?
A) forcing producers to factor into their production costs the cost of the externalities created in the production of their output B) finding a way to address cross-border pollution C) limiting the extent to which domestic firms can outsource production D) prohibiting economic activities that create externalities
A corporation can raise funds by
a. selling stock in the corporation. b. issuing bonds. c. borrowing from the bank. d. All of these.
Residential housing consumption is not affected by U.S. personal income taxes.
A. True B. False C. Uncertain