If real disposable income increases from $110,000 to $120,000 and consumption increases from $108,000 to $114,000, the marginal propensity to consume is:
A. 0.40.
B. 0.60.
C. 0.94.
D. 1.60.
Answer: B
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S2 could occur when
A) the U.S. interest rate falls. B) the expected future exchange rate rises. C) the U.S. interest rate differential increases. D) the current exchange rate falls.
Explain why an employer in a perfectly competitive market will hire more workers when the marginal revenue product is greater than the wage
What will be an ideal response?
On a one-dollar bill the letter in the middle of the seal indicates the
a. currency printing batch b. year of planned removal from circulation c. district bank issuing the bill d. legal reserve requirement e. type of paper used
Germany could have avoided the high inflation that it experienced in the 1920s by
a. not directing so many of its resources toward preparation for World War II. b. not increasing taxes so much on the German middle class. c. not allowing the quantity of money to increase so rapidly. d. using government policies to stimulate the economy more so than what was done.