When consumers realize additional income in a household and spend the additional monies, the portion of the additional income that is spent is measured by the
A) marginal propensity to consume. B) measure of individual wealth.
C) credit increase theory. D) aggregate demand factor.
A
You might also like to view...
The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of: a. hyperinflation
b. demand-pull inflation. c. disinflation. d. cost-push inflation. e. cyclical inflation.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
When aggregate expenditure is more than GDP, which of the following is true?
A) Firms spent less on capital goods than they planned. B) Households bought fewer new homes than they planned. C) There was an unplanned decrease in inventories. D) All of the above must be true when aggregate expenditure is more than GDP.
If an employer cannot distinguish the ability of workers a separating equilibrium will result
Indicate whether the statement is true or false