The marginal propensity to consume (MPC) is computed as the change in:
a. consumption divided by the change in savings.
b. consumption divided by the change in disposable personal income.
c. consumption divided by the change in GDP.
d. None of these.
b
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Mercantilism
A) is the philosophy of free international trade. B) was a system of export promotion and barriers to imports practiced by governments, especially in the 17th and 18th centuries. C) was praised by Adam Smith in The Wealth of Nations. D) Both A and C.
If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts, the price elasticity of supply approaches
a. zero, and the supply curve is horizontal. b. zero, and the supply curve is vertical. c. infinity, and the supply curve is horizontal. d. infinity, and the supply curve is vertical.
State sales taxes are operated as a system of
A. ad valorem taxation. B. unit taxation. C. revenue minimizing taxation. D. income taxation.
A payroll tax is also known as a(n) ________ tax
A) excise tax B) corporate income tax C) personal income tax D) social insurance tax