Answer the following statements true (T) or false (F)
1) If DI is $275 billion and the APC is 0.8, we can conclude that saving is $55 billion.
2) If the MPC is constant at various levels of income, then the APC must also be constant at all
of those income levels.
3) The average propensity to consume is defined as income divided by consumption.
4) 1 - MPC = MPS.
5) If the Hennige family's marginal propensity to consume is .70, then it will necessarily consume
seven-tenths of its total income.
1) T
2) F
3) F
4) T
5) F
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