The marginal propensity to consume is
A) Total consumption in a given period divided by total disposable income.
B) The percentage of total disposable income spent on consumption.
C) That part of the average consumer dollar that goes to the purchase of final goods.
D) The fraction of each additional dollar of disposable income spent on consumption.
Correct Answer:
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Q16: John Maynard Keynes argued that
A)Macro failure is
Q17: If injections exceed leakages,
A)Unemployment will rise.
B)Prices will
Q18: The critical issue of macro instability,when there
Q19: Leakages include
A)Business saving.
B)Exports.
C)Government spending.
D)Inventories.
Q20: Classical economists concluded that
A)Spending leakages exceed spending
Q22: The formula for the multiplier is
A)1/(1 -
Q23: The marginal propensity to consume is
A)That part
Q24: When unwanted inventories pile up in retail
Q25: A decrease in sales expectations may shift
Q26: Assuming an upward-sloping AS curve,if an economy
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