If your disposable income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.
a
You might also like to view...
The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
(a) free movement of capital internationally is destabilizing for a developing country. (b) portfolio investments were camouflaging overvalued exchange rates. (c) debt for equity swaps had created imbalances in the ownership structure of the economy. (d) the potential benefits of NAFTA had been oversold.
Which of the following kinds of agreements between two or more countries would be an example of a shallow integration measure?
A) An agreement to accept another nation's certification of architects B) An agreement to unify customs forms in order to speed up cross-border traffic C) An agreement to use the same environmental standards D) An agreement to impose the same limits on cartels and monopolies E) An agreement to limit subsidies offered to domestic businesses
The actual real interest rate and the expected real interest rate will be identical if
A) pe = p. B) pe > p. C) pe < p. D) none of the above
An economy's income is the same as its expenditure because every transaction has a buyer and a seller
a. True b. False Indicate whether the statement is true or false