Assume that disposable income equals $1000 and the mpc equals 0.6. If total consumption equal $800, then autonomous consumption is equal to
A) $0.
B) $200.
C) $800.
D) $1000.
B
You might also like to view...
If a production technology has diminishing marginal product of all inputs throughout, then the producer choice set is convex.
Answer the following statement true (T) or false (F)
Which of the following firms has unlimited liability?
A) only proprietorships B) only partnerships C) only corporations D) both proprietorships and partnerships
When firms enter a market, the supply increases and price:
A. increases and profits decrease. B. falls and profits increase. C. falls and profits decrease. D. increases and profits increase.
The idea behind the "Big Mac index" is a test of
a. interest rate parity theory. b. long-run equilibrium theory. c. purchasing power parity theory. d. exchange rate equalization theory.