The marginal propensity to consume measures the ratio of the:
a. average amount of our income that we spend.
b. average amount of our savings that we spend.
c. change in consumer spending to a change in money holdings.
d. change in consumer spending to a change in interest rates.
e. change in consumer spending to a change in income.
e
You might also like to view...
Failing to be fully informed may be efficient if information
A) is free. B) is scarce. C) is subject to increasing returns. D) has no opportunity cost of production.
David Ricardo's model, which provided an explanation of why nations trade, was based on:
a. labor productivity. b. technology. c. population. d. government control
Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600. What is marginal cost?
A. $240 B. $.20 C. $5 D. $720 E. none of the above
A capital outflow occurs when:
A. money saved in another country finances domestic investment. B. there is a positive difference between capital inflows and capital outflows of a country. C. there is a negative difference between capital inflows and capital outflows for a country. D. money saved domestically is invested in another country.