The average propensity to consume is
A. real saving/real disposable income.
B. change in real saving/change in real disposable income.
C. real consumption/real disposable income.
D. change in real consumption/change in real disposable income.
Answer: C
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A nation's real GDP was $250 billion in 2014 and $265 billion in 2015. Its population was 120 million in 2014 and 125 million in 2015. What is its real GDP growth rate in 2015?
A. 1.1% B. 5.7% C. 6.0% D. 15.0%
Which of the following mathematical statements is correct
a. Total Output=Productivity x Average Hours x the employment-population ratio x Population b. Total Output=Productivity / Average Hours x the employment-population ratio / Population c. Total Output=Productivity + Average Hours + the employment-population ratio + Population d. Total Output=(Productivity x Average Hours) / (the employment-population ratio x Population) e. Total Output=Productivity x Average Hours x the employment-population ratio
Under fractional banking, when a bank lends to a customer
a. the money supply increases. b. bank profitability is decreased. c. the bank is protected from a run. d. bank credit decreases.
Which of the following best explains how consumer spending can decrease even if disposable income remains the same?
a. Supply may decrease, raising the price of many goods.
b. The value of the consumers’ assets, such as stocks or property, might rise.
c. Inflation reduces the purchasing power of consumers’ disposable income.
d. Higher interest rates cause an increase in saving and decrease in spending.