If your real disposable income goes up by $200 per week, and your real consumption spending goes up by $160 per week, you have a marginal propensity to consume of
A. 1.2.
B. 0.2.
C. 0.8.
D. 1.0.
Answer: C
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Which of the following will not increase a nation's real GDP?
A. number of workers B. average price level C. technological progress D. labor productivity
A key assumption of new growth theory is that
A) all technological change is the result of luck. B) higher incomes lead to a higher birth rate. C) a successful innovator has the opportunity to earn a temporary, above-average profit. D) the population growth rate is lower than the real interest rate.
Another name for a consol is a ________ because it is a bond with no maturity date. The owner receives fixed coupon payments forever
A) perpetuity B) discount bond C) municipality D) high-yield bond