The fraction of a change in disposable income that is consumed is called _____
a. autonomous consumption
b. induced consumption
c. the multiplier
d. the marginal propensity to consume
e. the marginal propensity to save
d
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A firm's short-run supply curve shows the relationship between price and quantity supplied.
Answer the following statement true (T) or false (F)
Why do firms engage in price discrimination?
A) to decrease cost B) to increase profits C) to increase consumer surplus D) to prohibit the resale of their products
In an efficient market with rational expectations, the actual price of an asset
A) will equal its expected price. B) will often be below its expected price. C) will often be above its expected price. D) equals its expected price plus a random error term.
In an idealized laissez-faire world, the distribution of products is
a. the most efficient. b. the most fair. c. purely random. d. unpredictable.