In a private closed economy, national income is $4.5 trillion and savings equals $6.4 billion. Based on this data, the marginal propensity to consume
A. cannot be calculated from the data given.
B. decreases as income increases.
C. is less than the average propensity to consume.
D. is greater than the marginal propensity to save.
Answer: A
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Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation B. Core inflation C. Hyper inflation D. Nominal inflation
When a bank loans out $1,000, the money supply
A. increases. B. decreases. C. does not change. D. None of the above is correct.
If a meat shop owner sells meat to a restaurant and, in the evening, visits the same restaurant to enjoy some barbeque, then the amount paid by the meat shop owner to the restaurant will be counted twice in the GDP
a. True b. False Indicate whether the statement is true or false
Refer to the graph below. Assume that D1 and S1 are the initial demand for and supply of dollars. The exchange rate will be:
The graph below shows the supply and demand curves for dollars in the pound/dollar market.
A. $5 equals 1 pound
B. $4 equals 1 pound
C. $1 equals 5 pounds
D. $0.20 equals 1 pound