The marginal propensity to consume (mpc)
A) shows the fraction of total national income that is used for consumption
B) added to the marginal propensity to save (mps) always equals zero
C) is the relationship between a change in consumer purchases and the change in disposable income that allows consumption to change
D) declines as disposable income declines, eventually becoming zero as disposable income reaches zero
E) decreases as autonomous saving increases
Correct Answer:
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Q2: The size of the expenditure multiplier depends
Q3: In a simple model with no government
Q4: The size of the expenditure multiplier
A)changes with
Q5: The expenditure multiplier measures
A)the number of steps
Q6: If there is no government or foreign
Q8: In a model with no government or
Q9: The expenditure multiplier is used to calculate
Q10: Assume a model with no government, where
Q11: Assume a simple model without any government.If
Q12: A consumption function of the form C
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