The marginal propensity to consume (MPC) is
A) the percentage of real disposable income saved.
B) the percentage of an additional dollar of real disposable income that will go toward additional real consumption spending.
C) the percentage of real disposable income consumed.
D) the rate at which real consumption spending changes over time.
B
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If real GDP per person is above the subsistence level then, according to classical growth theory,
A) the population will increase. B) the standard of living will continue to improve. C) the population will decrease. D) labor productivity will increase. E) more technological advances occur.
Suppose your expenses for this term are as follows: tuition: $28,000, room and board: $9,000, books and other educational supplies: $2,500
Further, during the term, you can only work part-time and earn $16,000 instead of your full-time salary of $42,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $36,500 B) $56,500 C) $65,500 D) $72,500
If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now
Indicate whether the statement is true or false
A cartel
a. has one firm that acts as the price leader b. is a group of firms engaged in price discrimination c. acts like a monopoly d. involves competition between rival firms e. prices its output equal to marginal cost