Mathematically, the marginal propensity to consume is
a. consumption divided by income.
b. the change in consumption divided by the change in income.
c. income divided by consumption.
d. the change in income divided by the change in consumption.
B
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Nominal GDP is
A) real GDP adjusted for price changes. B) GDP valued at prices of that year. C) GDP valued at constant prices. D) real GDP valued at base year prices.
Assuming the central bank follows a money supply target, then an increase in the demand for money
a. will shift the position of the LM schedule away from the predicted level even if the target level of the money supply is achieved. b. will shift the position of the LM schedule toward the predicted level as long as the target level of the money supply is achieved. c. may or may not shift the position of the LM schedule away from the predicted level even if the target level of the money supply is achieved. d. None of the above
A monopolist that engages in perfect price discrimination
a. divides all buyers into two mutually exclusive groups b. refuses to sell to consumers of certain races, sexes, or creeds c. charges the same price for every unit sold d. charges a different price for every unit sold e. charges buyers who want a little of the good a low price and charges buyers who want a lot of the good a high price
A tax on an imported product is called a
A) tariff. B) quota. C) dumping signal. D) all of these choices.