The ratio of a change in consumption to a change in income is the:
a. consumption function.
b. propensity to consume.
c. average propensity to consume.
d. extra propensity to consume.
e. marginal propensity to consume.
e
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Consumer spending accounts for what share of GDP?
A. 20 percent B. 40 percent C. 70 percent D. 90 percent
If a price floor of $10 a bottle is imposed on wine from California,
a. all wine from California becomes more expensive. b. all wine from California becomes cheaper. c. the price of some wines will increase. d. the price floor will have no effect.
How do U.S. exports of agricultural products affect the demand for agricultural products?
What will be an ideal response?
The simple deposit multiplier is the ratio of the amount of
A) new reserves created by the banks to the amount of loans. B) loans issued by the banks to deposits created by the banks. C) new reserves created by the banks to the amount of deposits. D) deposits created by the banks to the amount of new reserves.