As disposable income decreases, the:
A. Average propensity to consume increases
B. Average propensity to consume decreases
C. Level of consumption increases
D. Level of saving increases
A. Average propensity to consume increases
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price increases from $8 to $10 is
A. -.63. B. -2.25. C. -1.60. D. -1.16.
According to the simple Keynesian model, when planned expenditure exceeds income
a. prices rise. b. unplanned inventory investment is negative. c. income falls. d. planned expenditure falls. e. both b and d.
Firms are assumed to
a. maximize profit per unit of output b. maximize total revenue c. maximize assets d. produce at the lowest point on their average total cost curve e. maximize profit
If Canada has a comparative advantage over Mexico in the production of shoes, it must also have an absolute advantage over Mexico in the production of shoes
Indicate whether the statement is true or false