If a family's disposable income is $100,000 and the amount it saves is $35,000,its
A) average propensity to consume is 0.65.
B) marginal propensity to save is 0.53.
C) marginal propensity to consume is 0.65.
D) marginal plus average propensities to consume equal 1.
E) average propensity to consume is 1.53.
Correct Answer:
Verified
Q1: If disposable income rises by $100 billion
Q3: The average propensity to consume is the
A)
Q4: The saving function assumes that personal saving
Q5: The slope of the consumption function is
Q6: If disposable income rises by $100 billion
Q7: The consumption function expresses the relationship between
Q8: If Carolyn's consumption rises by $5,000 as
Q9: The relationship between household spending and disposable
Q10: The additional amount a family spends on
Q11: If disposable income rises by $100 billion
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents