Which of the following is held constant along the demand curve?
A. quantity
B. price of the good
C. income
D. both A and B
Answer: C
You might also like to view...
If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $0.5 trillion, then saving will
A) increase by $0.25 trillion. B) increase by $0.5 trillion. C) increase by $1 trillion. D) remain unchanged.
The ________ interest rate more accurately reflects the true cost of borrowing
A) nominal B) real C) discount D) market
When the economy devotes more of its resources to investment goods, it must devote fewer resources to consumer goods
a. True b. False Indicate whether the statement is true or false
Which of the following concepts best explains why the distance between A and B is 0.1 but the distance between C and D is only 0.75?
a. expenditure multiplier
b. marginal propensity to consume
c. marginal propensity to save
d. unplanned inventory investment