The marginal propensity to consume is
a. the change in consumption associated with a change in income.
b. equal to the marginal propensity to save minus 1.
c. equal to 1 minus the marginal tax rate.
d. the change in consumption associated with a change in wealth.
A
You might also like to view...
The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s
This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________. A) increased; rightward; leftward B) decreased; rightward; rightward C) increased; rightward; rightward D) decreased; leftward; leftward E) increased; leftward; rightward
Of the following, who gains with a tariff?
A) domestic buyers of the good or service B) the importer of the good or service C) the foreign exporter of the good or service D) the government of the importing nation E) the government of the exporting nation
If 12 units of a good are sold when the price is $1 per unit, and 8 units are sold at a price of $1.50 per unit, then demand is
a. elastic. b. inelastic. c. of indeterminate elasticity. d. unit elastic.
Suppose that the spot exchange rate for a foreign currency is equal to $120, while the interest rate in dollars is 2% and the interest rate in the foreign currency is 3%. What is the approximate forward rate that is consistent with this situation?
A) $115.56 B) $124.44 C) $118.77 D) None of the above.