The marginal propensity to consume plus the marginal propensity to save is always
A) equal to zero.
B) greater than zero but less than one.
C) equal to one.
D) greater than one.
C
You might also like to view...
Transfer payments resemble
A. negative taxes. B. positive taxes. C. exports. D. none of these.
Democracy _______ essential to economic growth and according to the capabilities approach should _______________.
A. is; also be seen as essential to sustaining basic freedoms B. is not; still be essential in sustaining basic freedoms C. is not; not be considered as improving lives if it doesn't directly contribute to growth D. is; not be considered to create capabilities without directly contributing to growth
Cecilia's Cafe is a monopolistic competitor. If Cecilia's is currently producing at the output level at which her average total cost is minimized and the cafe is earning an economic profit, then, in the long run, output will
a. decline and average total cost will increase b. decline and average total cost will decrease c. remain unchanged as Cecilia's strives to minimize costs d. increase and average total cost will be greater e. increase and average total cost will be smaller
Maverick Brown and Mark Williams graduated from the same business school before being recruited by a reputable multinational company. However, within a year, the company promoted Maverick to the senior management level and paid him a higher salary than Mark. Which of the following factors can explain this pay differential?
a. Nature of the job b. Marginal productivity c. Age d. Work experience