The marginal propensity to consume (MPC) is
a. consumption expenditures divided by saving.
b. consumption expenditures divided by disposable income.
c. consumption expenditures divided by personal income.
d. additional consumption expenditures divided by additional disposable income.
D
You might also like to view...
The assumption that firms meet the demand for their products at preset prices is the key assumption upon which ________ is built.
A. the supply and demand model B. the basic Keynesian model C. Say's Law D. quantity equation for money
List four of the Federal Reserve's key functions
What will be an ideal response?
Using the graphical method to demonstrate the break-even point, which of the following statements is NOT true?
a. constant selling price per unit are represented by TR b. constant variable cost per unit is represented by TC c. variable costs increase at a constant rate of VC per unit of output d. below the point where TR and TC intersect, operating profits are realized e. all of these are true
If the marginal physical product (MPP) of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use
a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.