The marginal propensity to consume is defined as the
A) fraction of consumption that is spent on goods,both durable and nondurable
B) fraction of a change in income that is spent on consumption
C) fraction of a change in income that is spent on investment
D) average amount of consumption at different levels of income
E) average amount of consumption at a given level of income
Correct Answer:
Verified
Q51: The MPC plus the MPS equals
A)0.5
B)the multiplier
C)the
Q52: If income increases by $100 and the
Q53: Suppose that when disposable income rises from
Q54: The marginal propensity to consume measures the
Q55: The slope of the consumption function equals
Q57: The fraction of an increase in income
Q58: If the marginal propensity to consume is
Q59: If income increases by $100 and the
Q60: Suppose that when disposable income rises from
Q61: Exhibit 9-4
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