If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
What will be an ideal response?
.9
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Refer to the figure above. What is the initial equilibrium employment and wage rate?
A) 10 units of labor and $25 B) 20 units of labor and $25 C) 30 units of labor and $15 D) 10 units of labor and $35
The real return on bonds is
A) 0. B) r. C) R. D) i.
Using a commitment strategy in:
A. a simultaneous game can alter payoffs, but has no effect in sequential games. B. a simultaneous game has no effect, but can alter the payoffs and outcome of sequential games. C. either a simultaneous or sequential game has little impact on payoffs or outcome. D. either a simultaneous or sequential game can greatly alter the payoffs and outcome of the game.
Personal consumption expenditures include
a. all goods that business firms buy b. the purchase prices paid for stocks and bonds by individual households c. the construction of residential housing d. all goods and services bought by households e. the corrected value of housewives' services