If the marginal propensity to consume is unchanged and autonomous consumption expenditures increase, then
A. saving at every level of disposable income increases.
B. the break-even disposable income increases.
C. saving is unaffected.
D. the break-even disposable income decreases.
Answer: B
You might also like to view...
If the multiplier in the economy is 3, the marginal propensity to save (MPS) must be
A) 3. B) 0.67. C) 0.33. D) 1.
Which of the following is an example of a good with a highly elastic supply curve?
a. luxury goods b. tropical vacations c. pizza d. sports vehicles
If the number of dollars needed to buy a representative basket of goods falls, the price level
a. falls, so the value of money falls. b. falls, so the value of money rises. c. rises, so the value of money falls. d. rises, so the value of money rises.
The profit-maximizing output level for a monopolist occurs where marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)